A cell phone network recently called Bill and offered him a great plan.It was a low flat fee on all long distance calls with no roaming charges and unlimited hours to anyone else in the network.However,Bill discovered that so far there were only 3,000 network subscribers nationwide,so he turned down the offer.This company did not have
A) a good marketing idea.
B) enough absorptive capacity.
C) sufficient network externalities.
D) a true innovation.

Question

Quizplus · Accepted Answer

The company did not have sufficient network externalities, meaning there were not enough users in the network to make it valuable for Bill to join. Without a critical mass of users, there is little benefit to being part of the network.

A Cell Phone Network Recently Called Bill and Offered Him