Annabey Inc., a small candy manufacturing company established in 1937, now has several large units that sell unique flavors of candies and assorted chocolates.When the company started out in 1937, it initially experienced slow growth as it was selling brand new products in the market, but later on, their sales picked up at a drastic speed when customers decided to try their products.The CEO of Annabey credits its growth to all the customers who love their candies and chocolates.Which of the following factors of inimitability is best reflected in this scenario?

Question

Quizplus · Accepted Answer

Positive network externality refers to the effect where the value of a product or service increases as more people use it. In the scenario given, Annabey Inc.'s sales picked up at a drastic speed when customers decided to try their products, indicating a positive network externality.