The network effect is bundled into products, services, and platforms for buyers and sellers to buy and sell products. For example, delivery apps such as GrubHub, door dash, uber eats, instacart, postmates. Or social media apps such as Facebook, Twitter, Instagram, Linkedln, Snapchat, and many other servicing and social media apps. They all have one thing in common: they increase the company’s profit by using extremely reliable and convenient services for consumers. As you can see, it’s important to understand network effects because it can help businesses become more successful, according to Harvard University. “Companies that can leverage or exploit network effects often experience rapid growth rates,” Anand says. “Not just that: Once you’re ahead, you tend to stay ahead. Your demand keeps growing even faster as you get bigger.” Lastly, taking advantage of the network effect is, “Once you’ve gained significant market share, you can often sit back and let the network effect take over.” Letting the effect take over benefits the company because they have more time on their hands to work on more projects. If your network effect is effective, companies could lower their prices a bit for consumers because they don’t have to worry much about promoting and advertising their products. The picture above is an example of network effects while skype is in one app. On the other hand, Zoom is different because the user can access it on all sorts of devices.
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I like to joke so sorry if you don’t lol but were you hungry when you were making this post lol. Good examples though. Grub hub always gets me when I am on working close to lunchtime on any social media. They pop up and I order since I almost never bring lunch lol.
Hi Montajim! I think you used great explanations and resources for network effects. It is important to understand how large companies are having success through the apps they provide their customers and through their social media platforms. By gaining more market share customers start to recognize the brand name and more people will want to utilize their services or products. I understand why a lot of start-up businesses target universities for gaining more exposure and social media to appeal to a specific audience.