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Unformatted text preview: ibility (Apple’s Mac OS X Ro setta translatio n so f tware f o r
P o werP C to Intel)
Fo r rivals, be co mpatible with larger netwo rks (Apple’s mo ve to Intel; Live Search Maps)
Fo r incumbents, co nstantly inno vate to create a mo ving target and blo ck rival ef f o rts to
access yo ur netwo rk (Apple’s ef f o rts to blo ck access to its o wn systems)
Fo r large f irms with well-kno wn f o llo wers, make preanno uncements (Micro so f t) Move Early
In the wo rld o f netwo rk ef f ects, this is a biggie. Being f irst allo ws yo ur f irm to start the netwo rk
ef f ects sno wball ro lling in yo ur directio n. In Japan, wo rldwide auctio n leader eBay sho wed up just
f ive mo nths af ter Yaho o ! launched its Japanese auctio n service. But eBay was never able to mo unt
a credible threat and ended up pulling o ut o f the market. Being just f ive mo nths late co st eBay
billio ns in lo st sales, and the f irm eventually retreated, ackno wledging it co uld never unseat
Yaho o !’s netwo rk ef f ects le...
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- Winter '14