Exam 8: Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

___________ allows Apple to use iOS as a platform for exercise and personal health measurement.

Which of the following terms is used as an alternative to switching costs?

In a market influenced by network effects, the winning product or service is often determined by its technical superiority, with technically strong newcommers able to unseat the dominant incumbents.

Social proof is defined as the negative influence created when someone finds out that others are doing something.

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

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

_____ occur(s) when increasing number of users lower the value of a product or service.

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

With the help of examples explain how firms have used the strategies of alliances and partnerships to try to strengthen and develop network effects.

A market is said to be _____ if it derives most of its value from a single class of users.

A market dominated by a small number of powerful sellers is known as a(n) _____ .

___________ allows iOS to control home products including locks, lighting, and thermostats.

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

Regional anti-trust authorities may consider product bundling by dominant firms to be anticompetitive.

Samsung also leveraged _____to make Samsung Pay accepted at more retailers than either Apple Pay or Android Pay.

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equalibrium where their respective market shares are roughly identical.

Large firms often find new markets attractive, but might not have products ready for delivery. What strategy do such firms use to get potential adopters to delay their purchasing decisions?

A market where there are many buyers but only one dominant seller is known as a(n) _____.

Explain the nature of competition in markets influenced heavily by network effects.

A firm is said to have suffered from the _____ when it preannounces a forthcoming product or service, and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.