4
Scale: patterns to scale a platform
Network effects are fundamental to the success of platforms. As described above, they refer to the dynamic that more users on the platform leads to greater platform value. Network effects follow a self-reinforcing dynamic: More users leads to more value so that even more users are attracted. Without scaling there are no network effects and platforms become dead on arrival. Platforms either grow or die. Most incorrect assumptions about platforms have to do with the scaling phase. It is much easier to attract nerds, fans and early pioneers who are interested in the new platform than reach the majority of the target market, both on the demand and supply sides. That is why network effects can be difficult ...
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