Plot strategies for competing in markets where network effects are present, both from the perspective of the incumbent firm and the new market entrant. OR
Describe the reasons why it is so difficult for late-moving, incompatible rivals to compete in markets where a dominant, proprietary standard is present.
Network effects present unique challenges and opportunities for both established players and newcomers. Here’s an exploration of strategies from both perspectives:
Incumbent Firm:
New Market Entrant:
Challenges for Late-Movers:
Overall:
Competing in network markets requires a deep understanding of network dynamics and strategic maneuvering. While incumbents enjoy advantages, new entrants can succeed through innovative approaches, niche targeting, and exploiting the weaknesses of the existing network.