Network Effects Aren't Enough

Letto da: Fleet Cooper
Durata: 28 min
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Sintesi dell'editore

In many ways, online marketplaces are the perfect business model. Since they just facilitate transactions between suppliers and customers rather than take possession of or full responsibility for products or services, they have very low cost structures and very high gross margins - 70% for eBay, 60% for Etsy. And network effects make them highly defensible. Alibaba, Craigslist, eBay, and Rakuten are more than 15 years old, but they still dominate their sectors.

"Network Effects Aren't Enough" is from the April 2016 issue of Harvard Business Review.

©2016 by the President and Fellows of Harvard College, All Rights Reserved (P)2016 Audible, Inc.

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