2min chapter

Thinkers & Ideas cover image

The Future of Competitive Strategy with Mohan Subramaniam

Thinkers & Ideas

CHAPTER

Network Effects vs Scale

The value that you are generating from data expands when the size of the network goes up. If BNG is able to get a lead and give far more accurate predictions because of their network size, they'll take away the whole market. Now that's something that legacy firms should be aware of. The proof of concept comes from these tech giants that network effects can drive all these winner take all markets.

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