The goal of finding ways to make network effects work in a company's favor and against competitors can be achieved by:
A) taking the time to build a quality installed base for its standard after several tests and redesigns.
B) making sure consumers remain hesitant to bear switching costs.
C) focusing on a slow role out and moderating consumer demand.
D) leveraging the positive feedback loop.
E) relying on other industry members to establish a technological standard or format such that it becomes as quickly as possible as the industry standard.

Question

Quizplus · Accepted Answer

Leveraging the positive feedback loop is the most effective way to make network effects work in a company's favor and against competitors. This involves creating a product or service that becomes more valuable as more people use it, which creates a self-reinforcing cycle of adoption and growth. By focusing on building a strong user base through positive feedback, a company can gain a competitive advantage over rivals who can't match their user numbers or network effects. Choices A, B, C, and E may have some impact on network effects, but they do not directly address the concept of using a positive feedback loop to generate and sustain network effects.

The Goal of Finding Ways to Make Network Effects Work