This technical note discusses direct and indirect network effects in the context of building better business models, and scale economies. A number of the great business disasters of the dot.com bubble were businesses that scaled their infrastructure without working through the scaling effects. This note also discusses multi-sided platforms, the skewing of business models reflecting a mispricing to get one side on board, and suggests the importance of testing in creating workable business models.
Scale Effects, Network Effects, and Investment Strategy case study solution
PUBLICATION DATE: May 13, 2011 PRODUCT #: 611082-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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