Network Effects

2+2=5

Classic Example

Contemporary Example

Business Competition??

VS

Online ReTAIL

People & Content

“the term ‘producer’ is beginning to lose the meaning we thought it had” (Bazalgette, C; 2000)

Accessibility

Examples of Content

‘Funny cats’ search on

Advantages

• More people in the know

• Creates universal platforms

• Allows greater variety of products online

More Advantages

• Bringing people together

• Constantly growing

Disadvantages

• Privacy compromised

• Stifles “healthy” competition

=

More Disadvantages

• Downfall of traditional media e.g. print media

• Decline of face to face social interaction?

Development

The growth of network effects lies in the people who are a part of it; people

influence online retail and add content.

GenerationalA part of network effects?

Being cut off from society because they do not take part in network effects?

Wrapping Up…

• Network effects creates a ‘small world’ phenomenon; people can communicate using universally accessible platforms (Facebook etc)• Network effects changes with technology (telephones to social networking) so is bound

to continue developing in the future• You probably are a part of network effects

right now, even if you didn’t realise