Exam 7: Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

_____ are products or services that add additional value to the primary product or service that makes up a network.

A Blue ocean strategy often works best when combined with operational effectiveness.

In the absence of network effects, the value of a product or service increases as the number of users grows.

If 'V' represents the value of a network and 'n,' the number of users of a network, then according to Metcalfe's Law:

What are the points that a newcomer to a network effects-dominated market must keep in mind in order to compete effectively?

Two distinctly separate markets are said to undergo convergence when they:

_____ is said to occur when one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering.

Which of the following factors can potentially halt the availability of a firm's product or service?

Network effects are also known as _____ Law.

The higher the value of a user's overall investment, the more they are likely to consider the staying power of any offering before choosing to adopt it.

The natural state of a market where network effects are present is for there to be intense competition between several rivals.

The ability to take advantage of complementary products developed for a prior generation of technology is known as _____.

While Sony and Microsoft focused on the graphics and raw processing power favored by hard-core male gamers, Nintendo chose to develop a machine to appeal to families, women, and age groups that normally shunned violent games. The strategy adopted by Nintendo in this example is the _____ strategy.

Network effects that attract too many users result in a service being so overwhelmed it becomes unusable.

_____ are products and services that allow for the development and integration of complementary goods.

Which of the following factors ensures that a user considers the staying power of a product before adopting it?

Windows OS, the iPhone, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be _____.

Which of the following is an example of a one-sided market?

Network effects occur when:

_____ is a term used by the trade press and consultants to refer to customers who are tightly anchored to a firm.