Question

1. What are Network externalities? How do they play a role in Networking Effects?

2. Provide three examples of Networking either by specific industry or company and provide examples. Consider interlocking contracts as an option. Be creative.

3. Given that Networking can and does really impact company profitability, how have you integrated Networking in your own education and career path? Provide 3 examples of how you have been or plan to Network.

Answer 1

Networks externality is phenomenon when an additional user of good or service shall have on value of that product to others. Networks externality brings positive network effects like for example as more number of users join Instagram the higher is the value.

Networking effects is highly seen as negative if nore users join on network of Verizon, Similarly externality is positive if more number of users join on to Amazon Cloud. Also it is again negative when more users join Zomato for food delivery it causes networks to congest. Interlocking clauses lead to allocation of losses and risk mitigation from one party.

In career management, professional can network with similar cohorts and professional to gain more knowledge and higher the network more is value created causing positive network externality. Networks can be groen using seminars, trade and exhibition events, career progression programme, corporate trainings, etc.