Unlike most industries, which have room for multiple competitors-sometimes hundreds in a given category-the generalist social networking sector has little tolerance for too many players.

Question

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The generalist social networking sector is characterized by network effects, where the value of the service increases as more people use it. This leads to a winner-takes-most scenario, where a few dominant platforms emerge, and it becomes difficult for new entrants to compete, limiting the number of successful players.

Unlike Most Industries, Which Have Room for Multiple Competitors-Sometimes Hundreds