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Foundation

The Network Effect

8 minutes (1 section)
Strategy

Course Description

What do products and services like Sony Playstation, LinkedIn, and Amazon have in common?

One answer is that they all benefit from the network effect.

The network effect is a phenomenon in which the value of a product or service increases with the more users it has. This helps explain the immense power of the internet, and the dominance of certain services – such as popular social networks – over their rivals.

Learn how a high number of users add value to a product or service, and what happens when the number of users reaches “critical mass”.

Take this course, and learn how increasing the number of users can make your products or services more valuable.

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