27 Jul 2020

How Network Structure Shapes Defensibility and Scalability

Network Structure

Most attempts at understanding network businesses revolve around studying user engagement. This is measured by a range of metrics including frequency of use, time spent, number of payments, etc. However, this tends to gloss over a very important fact — engagement is an effect, not a cause. If we want to truly understand what makes network startups work, we need to begin with the underlying cause of their engagement pattern — their network structure.

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