MIS 290 Network Effects

Well this is my last blog for MIS 290 Chapter 7 Network Effects.
Network effects or Metcalfe's Law (after Bob Metcalfe inventor of the networking system) once wrote in Info World Magazine stating that the value of a network equals its number of users squared. I guess that was enough to get Bill Gates attention because Gates leveraged network effects to turn Windows and Office into virtual monopolies and in the process became the wealthiest man in America. Gates is one smart man in my opinion. When network effects are present, the value of a product or service increases as the number of users grows. More users equal more value. Keep in mind that a cool idea does not make a network effect happen.
Lets talk about Ebay with the early use of technology this allowed the firm to create both network effects and switching costs which give them a dual strategic advantage to keep a hammerlock on auctions. So in the world of network effects its a biggie to be first. This allows your firm to start the network effects snowball rolling in your direction.
Firms can also use partnerships to grow market share for a network. Exchange, staying power adds complementary benefits that often work together to reinforce one another in a way that makes the network effect even stronger.
While network effects limit competition against the dominant standard, innovation within a standard may actually blossom or create a monopoly-a market where there are many buyers but only one dominant seller.Aka Walmart.
Well in my opinion network effects work but you have to be first to gain the market and then on the other end it can create a monopoly and this can be bad because it leaves one dominant seller. Now if you are the creater/inventor then your monopoly will benefit you greatly but it leaves smaller businesses struggling and possibly going out of business which in turn costs jobs.
In my opinion technology is a wonderful thing yes and then again no because nothing can function without power.