Why companies with 'Network Effects' win
Nick Griffin, Head of Investments at Munro Partners, says network effects strongly dominate the digital business world. A network effect is when a good or service becomes more valuable as it’s more widely adopted, creating a virtuous cycle. Examples include Google, or closer to home, CarSales.com.au and RealEstate.com.au. “Once you have that network effect, for instance, with CarSales.com.au, it’s very hard to take it away… Ultimately, it’s not the customer who pays REA that is deciding whether to search at REA or not. It is the consumer, and the consumer is looking at it for free.” In this video, he explains why even Google has failed to compete against businesses with established network effects.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Nick is a founding Partner and the Chief Investment Officer of Munro Partners. He is responsible for the investment management of Munro’s key investment funds and the formulation and implementation of the proprietary investment process. Nick has over 20 years of financial services experience and over 14 years managing absolute return mandates focused on global growth equities.
2 topics
2 stocks mentioned
Nick is a founding Partner and the Chief Investment Officer of Munro Partners. He is responsible for the investment management of Munro’s key investment funds and the formulation and implementation of the proprietary investment process. Nick has...
Expertise
Nick is a founding Partner and the Chief Investment Officer of Munro Partners. He is responsible for the investment management of Munro’s key investment funds and the formulation and implementation of the proprietary investment process. Nick has...
Expertise
Comments
Comments
Sign In or Join Free to comment