Network Strategies Flashcards
What are Platforms?
Platforms mediate markets where users’ interactions with each other are subject to network externalities
What are Networks?
Networks are business relationships with multiple participants, both firms and individuals
When do Network Externalities exist?
Network externalities (or effects) exist when the value of a good to a user increases with the number of other users of the same or similar good
What is an “Ecosystem”?
Ecosystems describe the wider network including suppliers and competitors
What are examples of Platforms?
Android, Windows, Apple Blackberry
What is the Smartphone Ecosystem?
What contribution did Jean Tirole’s work make concerning Platfroms and Markets?
He rigurously studied and modelled platforms (2-sided)
His distinction factors are a) Price structure and b) Transaction volume … if both of them matter, it is a platform, if not, a market.
What are the ideal tyopes of business models?
What do we understadn under the term “2 Sided?”
The business engages with multiple customer groups at the same time (the transaction involves 3 or more parties to be complete)
The critical question is: do the customer groups interact or not?
Imagine an online dating platform:
- how many customer groups are there?
- do they interact?
- how do they pay?
- are there network effects?
What are some examples of Platfiorms or Markets?
What is meant by Increasing Returns to Adoption?
From the Demand Perspective:
What is the cycle that connects growth in the installed base to complementary goods?
