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Flashcards in Chapter 8 Deck (21)
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1

network effects

how the value that a user derives from a network is related to the number of users in the network (Metcalfe's law = V~n^2)

2

positive network effect

Mercalfe's law

3

negative network effect

congestion effect

4

congestion effect

each additional user lowers the value of the network

5

Addition value for Network effects

1. staying power
2. exchange
3. complementary benefits

6

Application Programming Interfaces

programming guidelines that tell other programs how to execute a certain task like retrieving information from the platform

7

one-sided markets

value is created for one single group of users

8

same-side exchange benefit

ensure that the value for a group of users increases due to an increase in the number of users of the same group

9

two-sided markets

value is created from two groups of network users

10

cross-side exchange benefits

an increase in one group of users cause an increase in value of the other group

11

positive feedback loops

occur when an increase in A leads to an increase in B which again leads to an increase in A and so on

12

technological leapfrogging

offering a new technology that is so superior to the old that its value exceeds the value of the network effects and technological functionality of the old technology

13

blue ocean strategies

firms seek to create and compete in new markets rather than competing in the existing markets

14

convergence

two or more markets once considered distinctly separate begin to offer similar features and capabilities

15

envelopment

where one market attempts to conquer a new market by making it a subset, component or feature of its primary offerings

16

backward compatibility

ability to take advantage of complementary products developed for a prior generation of technology

17

adaptor

products that allows a firm to tap into the complementary products, data, or user base of another product or service

18

osborne effect

a products has been around for a longer period and there is a chance a new product will emerge. at that moment, sales are sharply decreasing as users are waiting for a new product

19

collaborative consumption/ sharing economy

people share access to products and services

20

social graph

global mapping of users and companies and the way they are connected

21

content adjacency

advertisements are shown with embarrassing or offensive material, causing reputation damage