Discussion:network effects | Management homework help

By Wednesday, for your initial post, do a little a research on the concept of “network effects (Links to an external site.).” In essence, this phenomenon refers to a situation in which a product increases in value to a consumer when a greater number of other consumers also use the same product or service (think Facebook). Do you think this constitutes a “sixth force” in Porter’s five forces framework? If so, briefly explain how stronger or weaker network effects would influence industry competition in the Porter model. If you do not think network effects are sixth force, explain which of the existing five forces these effects would be part of.