Five Competitive Advantages: Network Effects
A competitive advantage increases revenue by 30% over the competition or decreases cost by 30%. Most businesses increase in value as the customer base grows and validates the product/service. Users encourage others to join the platform. This is called Network Effects. As the number of users grow, so the value of the platform grows as well. If a business can harness that customer base and turn it into a community that more aggressively attracts other users then it\u2019s a competitive advantage. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!