Are there ways to exploit an incumbents network effects against them?

Question

PaulHoule · Accepted Answer

There is this phenomenonhttps://www.youtube.com/watch?v=oAatPPEaZDASpecifically, online communities and communication tools tend to rot over time. Remember Paltalk? AOL Instant Messenger? Microsoft Messenger? ICQ? Skype? Lynq? Myspace? IRC? CU Seeme? WebEx?Their replacements didn't win by being technologically better (you have to work hard to tell the difference between Facebook Messenger and AOL Instant Messenger) but because they deteriorated and people could get a fresh start elsewhere.

muzani · Answer

It only really matters with certain forms (e.g. chat). Otherwise, quality wins.Very often new products launch using the incumbent's network as a launch pad. If you were starting, say, a football discussion site, you can pull people off Facebook/Reddit football groups, or some sports channel forum.

1cvmask · Answer

I think it really depends on the different types of network effects. Here is a presentation on the many different types of network effects.https://future.a16z.com/all-about-network-effects/

Are there ways to exploit an incumbents network effects against them?

Are there ways to exploit an incumbents network effects against them?

It only really matters with certain forms (e.g. chat). Otherwise, quality wins.
Very often new products launch using the incumbent's network as a launch pad. If you were starting, say, a football discussion site, you can pull people off Facebook/Reddit football groups, or some sports channel forum.

I think it really depends on the different types of network effects. Here is a presentation on the many different types of network effects.
https://future.a16z.com/all-about-network-effects/