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HBR's 10 Must Reads on Entrepreneurship and Startups (featuring Bonus Article “Why the Lean Startup Changes Everything” by Steve Blank)
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HBR's 10 Must Reads on Entrepreneurship and Startups (featuring Bonus Article “Why the Lean Startup Changes Everything” by Steve Blank)

by Harvard Business Review, Steve Blank, Marc Andreessen, Reid Hoffman, William A. Sahlman
January 2018
Beginner content levelBeginner
160 pages
3h 29m
English
Harvard Business Review Press
Content preview from HBR's 10 Must Reads on Entrepreneurship and Startups (featuring Bonus Article “Why the Lean Startup Changes Everything” by Steve Blank)

Network Effects Aren’t Enough

by Andrei Hagiu and Simon Rothman

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.

Little wonder that entrepreneurs and investors are rushing to build the next eBay or Airbnb or Uber for every imaginable product and service category. In the past 10 years, the number of marketplaces worth more than $1 billion ...

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Publisher Resources

ISBN: 9781633694392