Competing in network markets: Can the winner take all?

Products as varied as software, credit cards, and even coffee makers are influenced by network effects whereby the product's value is contingent upon the number of people using it. In turn, markets for these products offer lucrative returns to managers who can leverage the dynamics in their favor. This article describes recent research focusing on the factors that influence success and failure in network markets. We offer recommendations and initiatives that increase the likelihood of success in network markets for entrepreneurs and incumbents alike.