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Managing a Business Strategically
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Question:
Markets are likely to be served by a dominant platform when
Author: Pim BodzingaAnswer:
- Multi-homing costs are high for at least one side of the platform (high switching costs for customers) - Same-side externalities are positive and strong, at least for the side of the platform with high multihoming costs (more customers is goed for customers) - Low demand heterogeneity: degree to which the latent (verborgen) set of consumers has differing needs and requirements (customers happy & not looking elsewhere)
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