Network Effects are not present in all markets, but when they are, there are certain strategies that can help a firm gain competitive advantage.

Post two recent/current examples that illustrate these network strategies in action in two separate threads. In your posts, do not use examples already presented in the book. In your subject line, provide summary such as “Blue Ocean Strategy – Nintendo Wii” Your subject should specifically refer to which strategy in the book is being used. These are: Move early, Subsidize product adoption, Leverage viral promotion, Expand by redefining the market (blue ocean), Form alliances and partnerships, Establish distribution channels, Seed the market with complements, Encourage the development of complementary goods, Maintain backward compatibility, Be compatible with larger networks, Constantly innovate, Make pre-announcements.

Briefly describe how a company is using this strategy, and provide your own observation (why are they doing this? Do you think it will be effective? How do you think their competitors or the market will respond?) Also, post a link to where you found this information. For this exercise, press releases or even blog posts are fine. Be sure you are referring to a product or service that has network effects–not all do.

Ultimately, many providers of products/services in a market with network effects will use multiple strategies. Feel free to expand on different strategies used by the same company over your two posts.

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