In a market influenced by network effects, the winning product or service is often determined by its technical superiority, with technically strong newcommers able to unseat the dominant incumbents.

Question

Quizplus · Accepted Answer

In markets influenced by network effects, the success of a product or service is often more dependent on its user base and the value that increases with more users (network effects), rather than solely on technical superiority. Newcomers, even if technically superior, face significant challenges in unseating dominant incumbents due to the established user base and ecosystem of the incumbents.

In a Market Influenced by Network Effects, the Winning Product