scholarly journals Cryptocurrency Competition and Market Concentration in the Presence of Network Effects

Ledger ◽  
2021 ◽  
Vol 6 ◽  
Author(s):  
Konstantinos Stylianou ◽  
Leonhard Spiegelberg ◽  
Maurice Herlihy ◽  
Nic Carter
Keyword(s):  
Competitive Advantage ◽  
Network Effects ◽  
Market Concentration ◽  
Major Determinant ◽  
Entry Barriers ◽  
High Level ◽  
Valuation Tools

When network products and services become more valuable as their userbase grows (network effects), this tendency can become a major determinant of how they compete with each other in the market and how the market is structured. Network effects are traditionally linked to high market concentration, early-mover advantages, and entry barriers, and in the market they have also been used as a valuation tool. The recent resurgence of Bitcoin has been partly attributed to network effects, too. We study the existence of network effects in six cryptocurrencies from their inception to obtain a high-level overview of the application of network effects in the cryptocurrency market. We show that, contrary to the usual implications of network effects, they do not serve to concentrate the cryptocurrency market, nor do they accord any one cryptocurrency a definitive competitive advantage, nor are they consistent enough to be reliable valuation tools. Therefore, while network effects do occur in cryptocurrency networks, they are not (yet) a defining feature of the cryptocurrency marketas a whole.

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

Strategic Management and Design Innovation in the Long-Standing CompanyKyogashiMaster “Suetomi”

2012 ◽  
Vol 16 (5) ◽  
pp. 561-566
Author(s):  
Yusuke Irisawa ◽  
◽  
Shin’ya Nagasawa
Keyword(s):  
Competitive Advantage ◽  
Product Innovation ◽  
Management Strategy ◽  
The Other ◽  
Sustainable Competitive Advantage ◽  
Strong Point ◽  
Affective Value ◽  
Design Innovation ◽  
High Level ◽  
Tea Ceremony

Japanese Confectionary “Suetomi” is a high level brand among Kyoto’s long-standing companies. This always makes the Japanese sweets a high level in Kyoto, and gets the high appraisal from the parties concerned the master of the tea ceremony, such as “Urasenke.” In this study, we present an analysis of Suetomi’s management strategy and its strength and differentiation based on an interview with the president, Mr. Yamaguchi. Then, we analyze their innovation from the viewpoint of product innovation and affective value (i.e., sense value). Finally, we discuss the innovation of theKyogashidesign based on our research. In conclusion, Suetomi has a different strong point from the other company as a long-standing company of Kyoto confections and we have understood performing the management strategy which establishes a sustainable competitive advantage using it. Thus, they have performed the design innovation of Kyoto confections products in the management strategy which is compatible in tradition and innovation, and have created the value of a customer’s sensitivity.

Raw Material Stock Analysis in a Supply Chain

2013 ◽  
Vol 332 ◽  
pp. 437-442
Author(s):  
Emilia Campean ◽  
Liviu Morar ◽  
Lucia Blaga ◽  
Stefan Pap ◽  
Cristian Gelmereanu
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Production Systems ◽  
Raw Material ◽  
Consumer Service ◽  
Stock Analysis ◽  
High Level

Between regularity of production, selling goods and regularity of supply units need to be a perfect timing and a perfect collaboration. The paper presents the policies that can occur in each production systems, and the benefits that can be obtained from the collaboration between the systems elements. The competitive advantage is ensured through the harmonization of the three processes of the company and through the integration of the logistics chain of all upstream and downstream organizations in order to ensure a high level of consumer service at economical costs.

scholarly journals Wettbewerb im Internet: Was ist online anders als offline?

2011 ◽  
Vol 60 (2) ◽  
Author(s):  
Justus Haucap ◽  
Tobias Wenzel
Keyword(s):  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Market Concentration ◽  
The Internet ◽  
General Tendency ◽  
Market Regulation ◽  
Barriers To Entry ◽  
Online Content ◽  
Indirect Network Effects

AbstractThe Internet is characterized by competition between platforms which bring together potential partners of exchange. The degree of competition between these multi-sided platforms und market concentration are determined through (1) the strength of the direct and indirect network effects, (2) the extent of economies of scale, (3) the risk of congestition, (4) platform differentiation, and (5) the possibility of multi-homing. Depending on these factors different market concentrations and barriers to entry result. While there is no general tendency for concentration in the Internet and no general need for special market regulation of online content providers and intermediaries, single platforms may still have long lasting and significant market power which is unlikely to erode fastly, as the example of ebay illustrates.

scholarly journals MARKET COMPETITION AT THE LEVEL OF AGRICULTURAL PRODUCTS DISTRIBUTION

THE BULLETIN ◽  
2021 ◽  
Vol 3 (391) ◽  
pp. 40-44
Author(s):  
N. A. Gerasymchuk ◽  
L.M. Stepasyuk ◽  
Z.M. Titenko ◽  
I.M. Yermolenko
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Agricultural Sector ◽  
Market Competition ◽  
Market Concentration ◽  
Agricultural Products ◽  
Competitive Environment ◽  
Modern Business ◽  
High Level ◽  
Almost All

The article proved that in the context of European integration, the intensification of competition between producers becomes a major factor of the consolidation and unification of various economic entities, because this is one of the main ways to increase competitiveness, which in turn leads to market concentration. The investigation of the market structure, its type, and hence the economic processes occurring in it, is directly related to determining the state of the competitive environment, its assessment and study of the possibilities of restricting or developing competition. The article reveals the basic principles of development of agricultural enterprises, highlights the problems and prospects of their development in a competitive environment. The importance of concentration indicators in the context of the relationship between monopoly power and the level of concentration of sellers in the market is substantiated. Methodological aspects of using the market concentration index and the Herfindahl-Hirschman index are analysed; their advantages, disadvantages and possibilities of use in the process of market structure research, its type, state of competitive environment and degree of monopolization are revealed. In the process of research the concentration of agricultural markets, it was found that there was a moderate level in almost all types of products in Ukraine, only the pork market is highly concentrated. Analysis of the competitiveness of agricultural products shows that a significant market share is occupied by crops such as sunflower and corn. Studies show that there are certain types of products that have a high level of profitability, including rapeseed and barley, but they occupy a small market share. It is established that to ensure competitive production of agricultural products requires state support of the industry through the provision of tax and credit benefits to enterprises that implement modern business methods. Further prospects for the development of the agricultural sector in Ukraine have been identified.

The Impact of Management and Leadership Roles in Building Competitive Healthcare Units

2018 ◽  
pp. 13-30
Author(s):  
Aleksandra Rosiek-Kryszewska ◽  
Anna Rosiek
Keyword(s):  
Health Care ◽  
Competitive Advantage ◽  
Healthcare Facility ◽  
Health Care Facilities ◽  
Leadership Roles ◽  
Care Facilities ◽  
High Level ◽  
Innovative Culture ◽  
The Impact

This chapter discusses the leadership features that support the creation of an innovative culture of the organization, with particular emphasis on the attributes that are essential to building a competitive advantage in the medical services market. According to the concept of new management, managers are the initiators of change and development within the healthcare facility where they work. They require professionalism and a high level of competence which allows them to create and implement creative management solutions. Thus, the influence of management and the role of the leader in building competitive health care units is undisputed. Due to the specific nature of health care facilities, the ability to build trust, as well as the clear and precise communication of plans and visions, is gaining importance, in addition to knowledge and experience.

Intelligent Agents for Competitive Advantage

2011 ◽  
pp. 25-34
Author(s):  
Mahesh Raisinghani ◽  
John H. Nugent
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Competitive Advantage ◽  
Cycle Time ◽  
Intelligent Agents ◽  
Business Management ◽  
Telecommunications Networks ◽  
Management Processes ◽  
Level Model ◽  
High Level

This chapter presents a high-level model for employing intelligent agents in business management processes, much like has been successfully accomplished in complex telecommunications networks, in order to gain competitive advantage by timely, rapidly, and effectively using key, unfiltered measurements to improve cycle-time decision making. The importance of automated, timely, unfiltered (versus “end of period” filtered) reports is highlighted, as are some management issues relative to the pressures that may result concerning an organization’s employees who must now take action in near real time. Furthermore, the authors hope that understanding the underlying assumptions and theoretical constructs through the use of employing intelligent agents in business management processes as a sub element of, or tool within Business Intelligence (BI), will not only inform researchers of a better design for studying information systems, but also assist in the understanding of intricate relationships between different factors.

Directions in Wireless Telecommunications

2004 ◽  
pp. 186-212
Author(s):  
John H. Nugent
Keyword(s):  
Life Cycle ◽  
Wireless Communications ◽  
Early Detection ◽  
Competitive Advantage ◽  
Life Cycles ◽  
Inflection Points ◽  
Wireless Telecommunications ◽  
Telecommunications Market ◽  
High Level

Presented in this chapter are high-level analytical and operational tools and models that assist the wireless telecommunications professional in understanding the telecommunications’ market characteristics, life cycles, trends, directions, limits, and drivers. These tools demonstrate that wireless communications will follow the same life cycle characteristics as wire-line communications. Tools are also presented that provide important and timely insight for gaining competitive advantage based upon early detection of critical inflection points.

Effect of Business Intelligence on Competitive Advantage Case of Ankara IT Sector

2021 ◽  
Author(s):  
Sümeyye Öztürk ◽  
Aslihan Ünal ◽  
Izzet Kılınç
Keyword(s):  
Competitive Advantage ◽  
Business Intelligence ◽  
Qualitative Content Analysis ◽  
Low Cost ◽  
Government Support ◽  
Structured Interviews ◽  
Differentiation Strategy ◽  
Foreign Companies ◽  
Low Cost Strategy ◽  
High Level

The main purpose of this research is to examine the effect of business intelligence (BI) on competitive advantage in Ankara IT sector. For this purpose, we followed a qualitative research design phenomenology and conducted face-to-face semi-structured interviews with BI staff of 14 organizations defined according to criterion sampling method. We applied inductive qualitative content analysis to interview data. As a result, four main themes emerged: (1) BI adoption (2) competition, (3) organizations, and (4) recommendations. We found that BI has a positive effect on competitive advantage, but the nature of competition in sector is unfair and changeable according to the origin of the product. Leader foreign companies adopt differentiation strategy in gaining competitive advantage and there is a severe competition between the sector leaders. Companies that produce domestic BI solutions adopt low-cost strategy, but they are far away from the high-level competition among foreign companies. Government support and guidance are required for domestic BI solutions to be competitive.

Towards the identification of important strategic priorities of the supply chain network

2015 ◽  
Vol 21 (6) ◽  
pp. 1279-1298 ◽  
Author(s):  
Loukas K. Tsironis ◽  
Panagiotis Petros Matthopoulos
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Network Performance ◽  
Production Quality ◽  
Study Data ◽  
Manufacturing Companies ◽  
Important Conclusion ◽  
Content Type ◽  
High Level ◽  
Systematic Framework

Purpose – Supply chain (SC) is a homogeneous and interconnected network of firms which manages supplies, storages and handles material, information, personnel, equipment and final products throughout its length. The SC can be the means by which businesses add value to customers and therefore competitive advantage in the international market. Competitiveness no longer exists among individual members of a SC but between SCs. International literature pointed out, that strategy and competitiveness associated with specific strategic priorities. In this paper will be documented that the priorities as objectives of strategic importance comprise the key areas for the performance of the SC network. To support this, a systematic framework of strategic priorities, will be developed, which will visualize the major SC assessment areas that the SC network should turn its improvement efforts. The paper aims to discuss these issues. Design/methodology/approach – In total, 200 high level managers from 71 Greek manufacturing companies covering the whole country using their own SC networks took part in the study. Data analysis were conducted to create a model that describes the strategic priorities which are important, for the competitive advantage of their SC network. Findings – The results revealed seven critical strategic priorities: internal flexibility, production quality, waste reduction, customer focus, sustainability, reduction of production cost and efficiency. This paper analytically explores the strategic practices that seem to influence SC network performance and generates a systematic framework of the critical strategic priorities of the SC network performance. Practical implications – The proposed framework has six major advantages. First the research outcome enables managers to design their SC strategy. Second, proved the great importance of the strategic priorities institutionalization. Third, makes clear to stakeholders which are the SC network performance issues to consider. Fourth, the proposed framework could serve as a suitable formula for assessing the effectiveness and readiness of SC to face the competition. Fifth, it is an effective way of prioritizing the strategic practices as it provides the most important areas on which the firm can base tasks like evaluation, benchmarking and comparison of its SC both as a network and as individual firms. Finally, the proposed framework is an effective way to evaluate the consistency of strategic objectives and actions adopted for the SC. Originality/value – Literature review revealed a very important conclusion. It has been developed a broad discussion concerning issues on strategic practices which are responsible for the competitive advantage of the SC network. However, there has not been a significant effort on integrating all the practices under the spectrum of the SC in order to distinguish the most important of these practices that can lead to competitive advantages.

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