Facebook is one of the most dominant digital platforms in the world, with over 2.8 billion monthly active users and 10 million advertisers. But what are the digital concepts that enable Facebook to achieve such scale and reach? This article explores six key concepts that matter for Facebook’s tech strategy: network effects, data network effects, platform business models, digital superpowers, digital dragons, and digital competition.
Category Archives: Networks vs. Platforms vs. Network Effects
Facebook Meta is Mostly 4 Networks and 2 Platforms (Tech Strategy – Podcast 193)
Facebook Meta is not just one thing, but a collection of different products and services that work together to create a powerful tech ecosystem. In this podcast, Jeff Towson breaks down the four networks (Facebook, Instagram, WhatsApp, and Messenger) and two platforms (Oculus and Spark AR) that form the core of Meta’s strategy. He explains how each network and platform serves a different purpose, attracts a different audience, and generates a different revenue stream. He also analyzes the strengths and weaknesses of Meta’s approach, and what it means for the future of social media and augmented reality.
Facebook Meta is 4 Communications Networks, 2 Audience-Builders and Some Powerful Psych Hacking (1 of 3) (Tech Strategy – Daily Article)
Facebook Meta is one of the most fascinating and influential companies in the world. But what exactly is it? How does it create value and competitive advantages? In this article, Jeff Towson, a professor of investment and digital strategy, provides a comprehensive analysis of Facebook Meta’s business model. He reveals how the company operates four different communications networks, two audience builders, and some powerful psych-hacking techniques that shape user behavior and preferences. By understanding these aspects, you can gain a deeper insight into Facebook Meta’s current and future plans, as well as the implications for other businesses and society.
After the Fall of Crypto, Is Coinbase an Opportunity? (Tech Strategy – Daily Article)
High flying Coinbase has fallen to $50 per share, which is about a $10B market capitalization. This is dramatically down from its 2021 IPO share price of +$300. This drop follows mostly from its revenue being directly tied to the prices of Bitcoin and Ethereum. But it also has to do with the tremendous loss […]
My List of Web2 and Web3 Business Models (3 of 3) (Tech Strategy – Daily Article)
I’ve been arguing that digital strategy is mostly about developing expertise in 4 areas. Digital economics Platform business models AI and machine learning Blockchain Each area has lots of depth and most of the subjects listed in the Concept Library are about the first two. The last two are still emerging. But I think if […]
More Important Strategy Concepts for Web3 (2 of 3) (Tech Strategy – Daily Article)
In Part 1, I went through two strategy concepts for web3. Protocol Networks (i.e., Blockchains) with Property Rights Composability (i.e., Building Blocks) at Global Scale And I teed up two main questions for emerging web3 business models: The Value Creation Question: What is the most important use case and what value does this create for […]
The Big Strategy Concepts for Web3 (1 of 3) (Tech Strategy – Daily Article)
Everyone describes their initial look at blockchain and web3 as “going down the rabbit hole”. It starts simply with Bitcoin and cryptocurrency. Then they go to Ethereum. But then it quickly becomes a sea of confusing, contradictory, and usually half-baked topics. Such as: Decentralized vs. centralized platforms and systems. DAOs (decentralized autonomous organizations) and other […]
The 5 Important Strategy Concepts of Web3 (Tech Strategy – Podcast 133)
Web3 is the next generation of the internet, built on blockchain technology. It has the potential to revolutionize many industries, including finance, healthcare, and education. In this article, Jeff Towson discusses five important concepts that businesses need to understand in order to succeed in Web3.
Why Uniswap’s Protocol Is a Threat to Coinbase’s Marketplace (Tech Strategy – Podcast 120)
In this podcast, Jeffrey Towson discusses how Uniswap’s protocol is a threat to Coinbase’s PPH marketplace. He argues that Uniswap is more decentralized and efficient than Coinbase, and that it is likely to attract more users and liquidity. Ultimately, the success of Uniswap and Coinbase will depend on a number of factors, including the adoption of decentralized finance, the regulatory environment, and the competition from other exchanges.
Coinbase vs. Uniswap: How DeFi is Really Disrupting Platforms (Asia Tech Strategy – Daily Article)
There is a lot of talk about how web 3.0, which is about protocol networks, is going to disrupt web 2.0, which is about platform business models. I’ve given you my take on this in three articles: How to Think About Web 3.0 Business Models (1 of 3) (Asia Tech Strategy – Daily Article) Platform-Protocol […]