Sign in to save your progress, vote, and build your own decks.Sign in
Info Systems 2
Chapter 7
17 cards·by andyn15
Network effects
Metcalfe Law- the value of a product increases as the amount of users increases
The value derive from network effects
exchange, staying power, complementary benefits
Staying Power
the long-term viability of a product or service
Platforms
products or service that allow the development of integration of other services into a
product
One-sided market
a market that derives value from a single class of users
Same-side exchange benefits
benefits derived by interaction of users from a single class of users
two-sided market
network markets comprised of two distinct of participant, both delivering value to the
network
cross-side exchange benefit
when increase in the number of users in one side of the markets, creates an increase in another
side of the market
Value
Incumbent product (switching power +complementary products+exchange with products base+
tech functionality) > new incompatible entrant (tec
Technological leapfrogging
competing by offering a completely new technology that is superior to existing rival
technology that the value overcomes the resistance that
Blue ocean strategy
an approach where firms compete in uncontested market spaces rather than competing in spaces
that attract similar rivalry
Convergence
when two completely different markets begin to offer each other’s features and capabilities
( phone and media player are merging)
Envelopment
when one market attempts to conquer a new market by making it a subset, component or feature of
its primary offering
Backward Compatibility
the ability to take advantage of a complementary products developed for a prior generation of
technology
Adaptor
a product that allows to tap into the complementary products, data, or user base of another
product or service
The osborne effect
when a company pre announces a forthcoming product and experiences a sharp fall in sales of
current offered items due to buyers waiting for
Congestion effect
when increasing number of users, decrease the value of a product or service