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Unformatted text preview: e that has
given it a hammerlo ck o n auctio ns even as o thers have attempted to mimic its service and
undercut its pricing mo del. Leverage Viral Promotion
Since all pro ducts and services f o ster so me so rt o f exchange, it’s o f ten po ssible to leverage a f irm’s
custo mers to pro mo te the pro duct o r service. Internet calling service Skype (no w o wned by
Micro so f t) has o ver six hundred millio n registered users yet has spent almo st no thing o n
advertising. Mo st Skype users were recruited by o thers who shared the wo rd o n f ree and lo w-co st
Internet calls. And rise o f so cial media has made viral pro mo tio n a to o l that many f irms can explo it.
Facebo o k and Twitter act as a catalyst f o r f riends to share deals, spread a go o d wo rd, sign up f o r
services, and lo ad applicatio ns. Expand by Redefining the Market
If a big market attracts mo re users (and in two -sided markets, mo re co mplements), why no t
redef ine the space to bring in mo re users? Nintendo did this when launching the Wii. While So ny
and Micro so f t f o cused o n the gra...
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This document was uploaded on 01/31/2014.
- Winter '14