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Which is a tougher network effect to create/break: 2 sided: “We sell here because that’s where the buyers are and we buy here because that’s where the sellers are” I.e. eBay auctions 1 sided: “I’m here because my friends are and they’re here because I am” I.e. Twitter
I think it’s be really interesting to make a list of how to break network effects: - change the medium of communication I.e. the local market to the phone, the phone to the internet connected pc, the pc to the smartphone That’s what Facebook was so smart to buy IG and WhatsApp
- vertical integration which makes a step up improvement, I.e. furniture marketplace where the marketplace does delivery or Amazon FBA - maybe internationalization? Orkut was popular in Brazil but Brazilians travel and have international friends which was a boon for Facebook.
Both seem equally unpenetrable via direct assault.
Agreed. Maybe, if you had like a trillion dollars, you could do it, even with the same product but even that I doubt.
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