Network Effects Describe Value Creation; Strategic Power Requires Defensibility Against Competition
Chenyi Shi · Platforms and Power (with Hamilton Helmer and Chenyi Shi) · Acquired · Apr 6, 2022 · at 1:08:56
Chenyi Shi of Strategy Capital clarifies the difference between product-level network effects and structural network economies that generate defensible power.
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“Network effects describes only the value creation, and it's a statement without consideration about competition, which the latter is all power is about. So regardless of how we end up defining network economies, it is the type of platform that we believe has power, and that's differentiating from network effects on its own.”
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