Strategic innovation | Increasing returns
One of the main multipliers of the benefits occurs if our model of business can enter a dynamics of increasing yields. This situation we found it when a company, as it grows, still has more possibilities of growth, and in addition to exponential form, since the fact to arrive at one first stage from expansion is the one that allows him to initiate one second phase of growth, that simultaneously will allow him to arrive at third and so on.
Those companies of the same sector that are not able to enter dynamics, are suspended. So that a business model has capacity to enter this type of dynamics we must find some of these three aspects: what effect is denominated network, the fact that is a model that retroalimente he himself, or that exists an effect of learning or increasing acquisition of know-how. The effect network we found it in business models that contribute more value to the clients as there are more clients. Any product of communication (telephone, moving bodies, fax, email etc.) it has effect network. If only there is a person who uses them they do not have any value. However the value increases exponentially as the number of users of the system is increased. Another example, in this case speaking of Internet, we at the moment found it in virtual communities, vestibules of classified announcements or the vestibules of contacts, so fashionable. In all these cases, as it increases the number of users, the value that can be offered increases, which causes that they can grow more still in number of clients.
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