Studied by 76 people
Network Effects
Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands.
Platforms
Allow for the development and integration of software products and other complementary goods
Staying Power
The long-term viability of a product or service.
Switching Costs
The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.
Total Cost of Ownership
An economic measure of the full cost of owning a product
(typically computing hardware and/ or software). Includes direct costs such as purchase price, plus indirect costs such as training, support, and maintenance.
APIs
Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data.
Daily Active Users
the number of unique visitors, on average, who use a product or service
Customer Acquisition Costs
The amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.
one-sided market
A market that derives most of its value from a single class of users (e.g., instant messaging).
Revenue only flows in one direction
Getting value from service, but revenue only goes in one direction
Two-sided market
Network market that comprises two distinct categories of participant, both of which are needed to deliver value for the network to work (e.g., video game console owners and developers of video games).
same-side exchange benefits
Benefits derived by interaction among members of a single class of participant
Monopoly
A market where there are many buyers but only one dominant seller.
Oligopoly
A market dominated by a small number of powerful sellers
technological leapfrogging
Competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.
Social proof
The positive influence created when someone finds out that others are doing something.
blue ocean strategy
An approach where firms seek to create and compete in uncontested market spaces, rather than competing in spaces and ways that have attracted many similar rivals.
Convergence
When two or more markets, once considered distinctly separate, begin to offer features and capabilities.
As an example: The markets for mobile phones and media players have converted (and smartphones won).
Envelopment
When one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering
backward compatibility
The ability to take advantage of complementary products developed for a prior generation of technology
making current products be able to use older products
Adaptor
A product that allows a firm to tap into the complementary products, data, or user base of another product or service.
The Osborne Effect
When a firm preannounces a forthcoming product or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item
congestion effects
When increasing numbers of users lower the value of a product or service.
Freemium
A product with a free version—sometimes with limited features or that stops working after a period of time—to allow customers to try a product and hopefully entice them into making a product purchase or subscription decision
Complementary benefits
Products or services that add additional value to the primary product or service that makes up a network
Value-adding sources
work together to reinforce one another to make the network effect even stronger.
ex: imessage not available on android
Monopoly competition
few companies that compete with each other. Differentiated goods
Perfect Competition
big number of small companies. All companies manufacturing the standard products
OEM
i dont have the brains to build it. you build it for me and I'll put my name on it
License
get full rights to it and any changes you make for it
Distribution Channels
the network of businesses or intermediaries through which a good or service passes until it reaches the end consumer
the more you have, the more successful your company can be
Note 
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