Among industries based upon digital technologies,a key factor that determines the industry's structure and sources of its competitive advantage are whether:
A)It is subject to network externalities
B)It supplies hardware or software
C)The firms within it deploy the same business model or different business models
D)The scope of competition is national or global

Question

Quizplus · Accepted Answer

The presence of network externalities, where the value of a product or service increases as more people use it, can significantly impact the structure and competitive advantage of an industry based on digital technologies. It can lead to winner-takes-all dynamics and create high barriers to entry for new firms. The other options listed may also have some influence, but network externalities are the most significant factor.

Among Industries Based Upon Digital Technologies,a Key Factor That Determines