Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.
Yet what IS a network effect? How do we untangle the nuances of … [ Read more ]
Content: Article | Author: Anu Hariharan | Source: Andreessen Horowitz | Subjects: Business Model, Strategy
Companies that link complementary partners, like dating sites or online auctions, can dominate for years or be swept away in an instant.
Content: Article | Author: Dylan Minor | Source: strategy+business | Subject: Business Model
Software is becoming critical for almost every company’s performance. Executives should ask what they can learn from business models employed by software providers themselves—and consider the implications for their IT function.
Content: Article | Authors: Hugo Sarrazin, Johnson Sikes | Source: McKinsey Quarterly | Subjects: Business Model, Strategy