2 ms·
Regarding social media, there are rather a lot of social media platforms: FB-Instagram-WhatsApp, TikTok, Reddit, Snapchat, LinkedIn, StackOverflow, plus platfor
by prewett 3y ago
Regarding social media, there are rather a lot of social media platforms: FB-Instagram-WhatsApp, TikTok, Reddit, Snapchat, LinkedIn, StackOverflow, plus platforms like the neighborhood app whose name I can't remember. A new social media platform can get rapid adoption, too, like TikTok. So I'm not sure that the barriers to entry are actually all that high, even with the network effect. The barrier to entry to building New FB is pretty high even without the network effect (knowledge, code, and worldwide servers to maintain a high reliability, always-available worldwide app, along with the sales/marketing to support the ad revenue). But even in an industry with obviously low barriers, soft drinks, nobody makes New Coke, you make a drink with a different flavor. (Even Coke could get New Coke to work!)