Huawei Cloud Developer Alliance

Mar 17, 2020 · R&D Management

How to Overcome Network Externalities in the IT Industry

This article analyzes why monopolies arise in the information economy, how network externalities shape IT industry competition, and proposes strategies such as market‑share expansion, standardization, user lock‑in, compatibility, and the "embrace‑extend‑extinguish" approach to break these externalities.