Network Scalability and Effects. Network effects are crucial for a company like Buying.
05 Jan 2022, 13:52
🎗Network Scalability and Effects🎗
Network effects are crucial for a company like Buying.com because such effects are the most important means to build defensibility for a tech company. The Buying.com ecosystem exhibits several network effects.
❇️ General Direct Network Effects
The increased usage of the Buying.com service either as it applies to the micro-distribution network or to MOQ ordering will lead to a direct increase in the value of the service and its users. Moreover, because of the topology of the network, certain subgraphs corresponding to the regional delivery networks will be densely connected. Such densely connected subgraphs cement people’s commitment to the network and according to Reed’s Law (12) the true value of such a network increases exponentially with respect to the number of nodes.🎖️