Question

How does a social network website depend on network effects among users?

2. Explain the advantages of Mixi in competition against a totally new competitor.

3. How do the advantages in (2) apply to Mixi competing against Facebook? Consider whether Mixi users post in English or Japanese.

4. For Mixi, compare the advantages and disadvantages of switching to a real-name policy.

Answer 1

Q : How does a social network website depend on network effects among users?

Social network websites are very much dependent on network effects among users. Network effect can be defined as the improvement or increase in the value of a good or service when number of people participating increases. This effect is seen very common and can be seen through out the social network websites. When more people use the websites, it becomes a platform more useful and popular among public. Network effect had a very positive impact on social network websites. It help the websites to grow exponentially. Some of the examples for social network websites which had grown with the help of network effect are; Facebook, Twitter ,Instagram , Youtube etc..Network effect makes the website more valuable and hence more people will be encouraged and attracted to join. This creates a bandwagon effect because as the value increases more people will go for it.

To conclude, network effect have high positive impact in the development and growth of social network website. Hence social network websites are very much dependent and take advantage on network effect among users.