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Unformatted text preview: m to tal o f hardware and
o utlets that suppo rt the BS 1363 electrical standard. K E Y TAK E AWAY
Network effects are among the most powerful strategic resources that can be created by
technology‐based innovation. Many category‐dominating organiz ations and technologies,
including Microsoft, Apple, NASDAQ, eBay, Facebook, and Visa, owe their success to network
effects. Network effects are also behind the establishment of most standards, including Blu‐ray,
Wi‐Fi, and Bluetooth. QU E S TI ONS AND E XE RC I S E S
1. What are network effects? What are the other names for this concept?
2. List several products or services subjectto network effects. What factors do you believe helped
each of these efforts achieve dominance?
3. Which firm do you suspect has stronger end‐user network effects: Google’s online search tool or
Microsoft’s Windows operating system? Why?
4. Network effects are often associated with technology, but tech isn’t a prerequisite for the
existence of network effects. Name a product, service, or pheno...
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This document was uploaded on 01/31/2014.
- Winter '14