#In todays economy its almost impossible drivers#
#In todays economy its almost impossible Pc#
#In todays economy its almost impossible free#

Amazon, for example, constantly evaluates and refines its services and communications, doubling up on what works and reinforcing its dominance.

#In todays economy its almost impossible free#

They often add free or subsidised services to generate more data, producing a recursive relationship between adoption and usage, product and service quality, and further adoption and usage. To exploit it, they use analytics, increasingly automated (вЂњmachine learningвЂќ), mainly to drive continuous improvement in products and services, pricing, personalisation and advertising targeting. ThatвЂ™s why the failure rate is high, and tech start-ups such as Twitter, LinkedIn, Uber, Pinterest and Snapchat may need to be sustained over many loss-making years - or even never achieve profitability as standalone businesses.Дigital businesses gather data relentlessly, cheaply and efficiently. New platform businesses face the chicken-and-egg challenge of achieving critical mass in both or all the key markets simultaneously.

For instance, Facebook connects six: friends as message senders, friends as message receivers, advertisers, app developers, and businesses as both message senders and receivers. The general term for platform markets is вЂњmulti-sidedвЂќ because some platforms facilitate interaction between more than two types of user. Once a platform dominates the relevant markets, these network effects become self-sustaining as users on each side help generate users on the other. diners) depends on the number of participants in the other market (e.g. These network effects are вЂњindirectвЂќ because вЂ“ unlike with the direct, single-market, externalities above вЂ“ the value to participants in each market (e.g.

#In todays economy its almost impossible drivers#

Most tech companies are, at least to a degree, вЂњplatformвЂќ businesses: they create value by matching customers with complementary needs, such as software developers and users (MicrosoftвЂ™s MS-DOS and AppleвЂ™s App Store), suppliers and customers (Amazon), drivers and potential passengers (Uber) or advertisers and consumers (Google and Facebook). Indirect (cross-market) network effects вЂ“ or вЂњplatform economicsвЂќ For instance, these behavioural effects are important for teenagersвЂ™ choice of social media.ДЈ. There can also be both positive and negative вЂњbehaviouralвЂќ direct network effects if other consumersвЂ™ adoption of a product makes it either more, or less, acceptable, fashionable or attractive. This effect is formally known as a вЂњdirect network externalityвЂќ (вЂњexternalityвЂќ because it involves third parties in addition to the individual customer and firm). The value of a communications network increases disproportionately as it expands, bringing in more other people for each user to connect with. For instance, AI and cloud-based resources can support a wide range of diverse activities, and get better and more efficient the more they are used.Дў. Digital products and services have high fixed costs and low-to-zero marginal costs, as well as economies of scope and learning. Traditional economies of scale, scope and learningДЄt least part of the tech giantsвЂ™ market dominance can be attributed to traditional economic factors. The first four factors are relatively obvious the others perhaps less so, being based more on human behaviour than on economics and technology.ДЎ. What is behind this phenomenon? Will todayвЂ™s market leaders (GAFA - Google, Apple, Facebook and Amazon вЂ“ and Microsoft) be displaced or eclipsed by others? Or will the dynamic change? Nine mutually reinforcing factors drive these companiesвЂ™ market dominance. In the words of industry analyst Ben Thompson of, dominant tech companies can be eclipsed but not displaced. Instead, the threat is that a newer, bigger, adjacent market emerges, dominated by another player, as mainframes and PCs have been overshadowed by online, mobile and cloud-based technologies. But once a tech company achieves clear market leadership - usually as a fast follower with better execution than the pioneer - it soon attains complete dominance and is then almost impossible to displace. New tech markets are often intensely competitive, amplified by the volatile nature of the technologies themselves. Since 2007, Apple and Google (Android) have dominated the market for mobile internet operating systems. In the 1990s, with the advent of the World Wide Web, the winners were Google in search, Amazon in e-commerce and Facebook in social networking.

#In todays economy its almost impossible Pc#

In the 1980s, Microsoft and Intel dominated the PC software and processor markets. In the 1960s, IBM dominated the computer mainframe market.