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Strategy and Technology (Strategies for winning a format war (Ensure a…
Strategy and Technology
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Network effects, positive feedback, and lockout
Positive feedback: who wins the format war will be the one whose strategy best exploits positive feedback loops
Network effects: The network of complementary products as a primary determinant of the demand for an industry’s product.
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¨If you’re planning on the future to unfold at the same pace as the past, you’re likely to run into trouble (Satell, 2013).