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Network Effects 2+2=5
Classic Example Contemporary Example
Business Competition?? VS
Online ReTAIL
People & Content “the term ‘producer’ is beginning to lose the meaning we thought it had” (Bazalgette, C; 2000)
Accessibility
Examples of Content ‘Funny cats’ search on
Advantages More people in the know Creates universal platforms Allows greater variety of products online
More Advantages Bringing people together Constantly growing
Disadvantages  Privacy compromised Stifles “healthy” competition =
More Disadvantages Downfall of traditional media e.g. print media Decline of face to face social interaction?
Development The growth of network effects lies in the people who are a part of it; people influence online retail and add content.
Generational A part of network effects? Being cut off from society because they do not take part in network effects?
Wrapping Up… Network effects creates a ‘small world’ phenomenon; people can communicate using universally accessible platforms (Facebook etc) Network effects changes with technology (telephones to social networking) so is bound to continue developing in the future You probably are a part of network effects right now, even if you didn’t realise

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Pecha kachka powerpoint meds 1101

Notes de l'éditeur

  1. Introduce/ similar to synergy – more valuable the bigger it is
  2. Real world scenario/ like sheep/ one person uses it, everyone follows/ egfacebook
  3. Telephones – more people had a telephone = more social value / same for facebook / contemporary taking over the traditional?
  4. Network effects can heighten competition / huge amounts of users
  5. More people that use retail websites more products there will be (quantity and diversity) / networks effects is beneficial for the long tail retail theory
  6. Network effects blurs the definition of “producer” / millions of people are watching content on one platform made by individuals
  7. Network effects more prominent because more accessible? / can be used anywhere
  8. Metaphor – network effects growth is dependant on people / people add content
  9. Growing social circles amongst young generations / older generations being further cut off from social interaction because of network effects?