Browse MBAs SECTION 4: Managerial Economics

The Network Effects Analyzer

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The Network Effects Analyzer

Analyse the network effects (or lack of them) in this business.

The business/platform: [DESCRIBE]
Who's on which side: [USERS, PROVIDERS, ADVERTISERS, ETC.]
Current scale: [DESCRIBE]

Provide:
1. Whether real network effects exist and of what kind (direct,
   indirect/two-sided, data)
2. The chicken-and-egg problem and how to solve the cold start
3. Where the tipping point is — the scale at which growth compounds
4. The risks (multi-homing, disintermediation, local vs global networks)
5. How to strengthen and defend the network effect

Be rigorous — many businesses claim network effects that are really just
economies of scale or brand. Tell me which this is.

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