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15/02/2015 Reflections 4: Network Effects https://class.coursera.org/ntuecom001/forum/thread?thread_id=2394 1/2 PINNED LOCKED Help Center Forums / Reflections 4 Reflections 4: Network Effects Subscribe for email updates. No tags yet. + Add Tag ECommerce MOOC Team STAFF · 3 days ago Reflections 4: Network Effects Due Date: 17th Feb 2015, 12:00 SGT We switch gears a bit this week, and consider if we can apply our lessons this week to established "offline" industries. As always, please open a separate thread for each of your responses. Do refer to the Guidelines for your submissions if you're unclear. In a paper[1] in the Antitrust Law Journal, a legal scholar had once argued the following: Coca‐Cola and Pepsi‐Cola drinkers benefit from the network of their fellow consumers be cause Coke and Pepsi are widely available in restaurants and in vending machines. 1. Given what you’ve learnt this week on networkeffects, briefly discuss the positive and negative externalities that may or may not exist among softdrink consumers. What is the “network” that may exist in this context? What factors may incentivize existing consumers into bringing more “users” into this network 2. Softdrink manufacturers such as Coke or Pepsi typically engage thirdparty bottlers into manufacturing their product and getting them to sell to consumers directly. Why then, is this not an example of a twosided market? 3. New entrants such as SodaStream have tried to enter the softdrink space through innovative products that allow creation of fizzy drinks in consumer homes. Given what you have learnt this week, what new strategy, in terms of networks or platforms, can SodaStream adopt to maximize their sales and revenue? Be brief in your description. [1] Muris, Timothy J. “The FTC and the Law of Monopolization”, Antitrust Law Journal, Vol. 67, No. 3, 2000 http://papers.ssrn.com/paper.taf?abstract_id=235403 (Retrieved 9th Feb 2015) [Note: this is not required reading.] Points to note: 1. Do remember to post your responses in the Reflections 4 subforum as a new thread, non anonymously. We will need to see your name. 2. Do feel free to read other posts as well and see if you can constructively add to them; there's a

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Reflections 4 - Network Effects - Foundations of E-commerce course

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  • 15/02/2015 Reflections4:NetworkEffects

    https://class.coursera.org/ntuecom001/forum/thread?thread_id=2394 1/2

    PINNED LOCKED

    HelpCenterForums/ Reflections4

    Reflections4:NetworkEffects

    Subscribeforemailupdates.

    Notagsyet.+AddTag

    ECommerceMOOCTeam STAFF 3daysago

    Reflections4:NetworkEffectsDueDate:17thFeb2015,12:00SGT

    Weswitchgearsabitthisweek,andconsiderifwecanapplyourlessonsthisweektoestablished"offline"industries.Asalways,pleaseopenaseparatethreadforeachofyourresponses.DorefertotheGuidelinesforyoursubmissionsifyou'reunclear.

    Inapaper[1]intheAntitrustLawJournal,alegalscholarhadoncearguedthefollowing:

    CocaColaandPepsiColadrinkersbenefitfromthenetworkoftheirfellowconsumersbe

    causeCokeandPepsiarewidelyavailableinrestaurantsandinvendingmachines.

    1. Givenwhatyouvelearntthisweekonnetworkeffects,brieflydiscussthepositiveandnegativeexternalitiesthatmayormaynotexistamongsoftdrinkconsumers.Whatisthenetworkthatmayexistinthiscontext?Whatfactorsmayincentivizeexistingconsumersintobringingmoreusersintothisnetwork

    2. SoftdrinkmanufacturerssuchasCokeorPepsitypicallyengagethirdpartybottlersintomanufacturingtheirproductandgettingthemtoselltoconsumersdirectly.Whythen,isthisnotanexampleofatwosidedmarket?

    3. NewentrantssuchasSodaStreamhavetriedtoenterthesoftdrinkspacethroughinnovativeproductsthatallowcreationoffizzydrinksinconsumerhomes.Givenwhatyouhavelearntthisweek,whatnewstrategy,intermsofnetworksorplatforms,canSodaStreamadopttomaximizetheirsalesandrevenue?Bebriefinyourdescription.

    [1]Muris,TimothyJ.TheFTCandtheLawofMonopolization,AntitrustLawJournal,Vol.67,No.3,2000http://papers.ssrn.com/paper.taf?abstract_id=235403(Retrieved9thFeb2015)[Note:thisisnotrequiredreading.]

    Pointstonote:

    1. DoremembertopostyourresponsesintheReflections4subforumasanewthread,nonanonymously.Wewillneedtoseeyourname.

    2. Dofeelfreetoreadotherpostsaswellandseeifyoucanconstructivelyaddtothemthere'sa

  • 15/02/2015 Reflections4:NetworkEffects

    https://class.coursera.org/ntuecom001/forum/thread?thread_id=2394 2/2

    0

    wealthofexperienceouthere!Butremember,onlythequalityofyourpostcountstowardsourevaluation,notthenumberofupvotes.

    3. Ifyouseeanyoutofcontext,abusive,insensitiveorplagiarizedposts,dohighlightthemtousintheFlaggedContentsubforum.

    flag


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