OMIS 3710 Chapter Notes - Chapter 8: Viral Marketing, Playstation 3, Blue Ocean Strategy

• School: York University
• Department: Operations Management and Information System
• Course: OMIS 3710
• Professor: Henry Kim

Document Summary

Network effects are among the most powerful strategic resources that can be created by technology-based innovation. Many category-dominating organizations and technologies, including microsoft, apple, ebay, facebook, and visa, owe their success to network effects. Network effects are also behind the establishment of most standards, including blu-ray, wi-fi, and bluetooth. More users, more connections, and more communication channels. Network effects: also k(cid:374)o(cid:449)(cid:374) as met(cid:272)alfe"s la(cid:449), or (cid:374)et(cid:449)ork exter(cid:374)alities. When the value of a product or service increases as its number of users expands. Switching costs: the cost a consumer incurs when moving from one product to another. It can involve actual money spent (e. g. , buying a new product) as well as investments in time, any data loss, and so forth. Platforms: products and services that allow for the development and integration of software products and other complementary goods. Windows, the iphone, the wii, and the standards that allow users to create facebook apps are all platforms.