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internet library library
Network Effects
File size:
228 KB
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Published: 13.01.2020.
Language: English
Level: Secondary school
Literature: n/a
References: Not used

2. Provide examples of other company’s products/services/strategies aimed at creating (or taking advantage of) network effects.
a. One of examples for network effects is Uber or Lyft, which offers ride sharing. In both companies, more drivers benefit more riders, because wait time is reduced. But in this case, need to think how far this advantage goes, because there has been done a research that less than 4 minutes wait, for riders it doesn’t matter much, is it 2,3 or 4 minutes, but above this number minutes are quite crucial.
b. Another example of network effects benefit is Netflix, in this case value of service is increased by data company owns, based on algorithms which are checking what other users are viewing and then suggesting what specific person could be interested in, the more users Netflix has, the more precise can be the predictions.

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