Definition:
The value of a product to a user depends on the number of other users of the product. Some people call the business model built by network effect "platform economy".
Features:
The more users, the more valuable, the more valuable, and the more users, forming a virtuous circle.
Once the total number of users breaks through a certain zero boundary point, it will enter a situation of "winner takes all".
The first move is the best. Whoever breaks through the zero pole first will occupy the market first. Once occupied, it is difficult for latecomers to break through. If Ali does Taobao first, Tencent can't surpass it; Tencent does WeChat first, but Ali can't surpass it.
Example:
* WeChat. You are the only one among relatives and friends. WeChat is of no value to you at all, but it is of great value to you when everyone is using WeChat. Even if you no longer want to use WeChat, everyone is using it, and you can't leave. Examples include fixed telephones, fax machines and mobile phones.
* Apple's iOS, Microsoft's Windows Phone and Google's Android are three competing networks.
Use:
1 Increase user stickiness. "Come for tools, stay for the network". Establish a social network with additional functions inside, for example,
* get the message in this column. People exchange ideas through messages, and messages become even more important than articles. The more information, the more valuable the column is. It can also be more open, such as not only the discussion between colleges and columnists, but also the interactive discussion between students, and the establishment of study groups, life libraries, time banks and other social functions.
* Gyms, car clubs, bicycle clubs, etc.
* Apple Store
* ? Beep Beep, Live Broadcast, Public Comment, Taobao, Didi Taxi, Meituan
* When you register an APP, the software will ask you to read your address book, move your natural network to the APP, and increase the user base.
* Online games, including clubs, gangs, upgrades, etc. Can help you build more personal relationships in the virtual world.
* Community economy
2 Establish alliances (peers or horizontal alliances) to increase the user base. [Establish alliances with people at the same level; Or take the differentiated alliance as an example,
* Zero fashion women's wear. Encourage each store to establish alliances with affiliated beauty salons and gyms;
:: Star Alliance and SkyTeam in aviation.
* Credit card
* Holiday shopping mall activities, how much you buy can enjoy a 20% discount on any goods.
* Electric vehicles and charging piles. More cars, more electric piles, more electric piles, more cars.
* During the peak holiday season, shopping malls sell prepaid shopping cards, which can be used in major shopping malls, cafes, gas stations and restaurants.
* Many apps support logging in via WeChat and Weibo, and you can also bind Youdao Notes and Evernote.
* Build gyms and cafes for adults near early childhood education institutions, and build children's parks where adults consume.
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If you are still interested, you can refer to the summary of the study notes of Stella Xiaoya's Five Minutes Business School to learn more!