Paper - Single spaced, 12pt font in Word that outlines: Network Effects: Provide a break down of the 4 types of network effects as related to this case. Porter's Five Forces: Apply Porter's Five...

Network Effects
Same-Side effect
Same-Side network effect shows strength of one side than can have impact on its growth. These are direct network effects that can occur on the same side of the multi-sided network. It refers to changes in the values and it occurs for users on the same side along with addition of multiple users on the side. It can provide benefits to Windows users that can gain additional benefits from new windows users because of file compatibility. It can help in easy sharing of files and growing number of people with the use of the same platform (Pianzola, Simone, and Gerhard, 2020). It is related with the case as this network effects can help in adding users of the same kind that can help in making service more valuable. This network effect will help Wattpad in increase interaction that is happening between producer and consumers.
Cross-Side effect
Cross-Side effect is the type of network effect that can occur when people on one side of the market can benefit from increasing the number of participants on the other side of the network. This effect can have direct network effects that arise from complementary services or goods in the network with more than one side. This effect refers to direct increase in the value to users on one side of the network along with addition of users to another side of the network. The cross-side effect is related with the case it provides idea behind the network and every new user can improve the value of services or products for both existing and new users. This is useful for Wattpad in describing the phenomenon along with the value of products for improving for all users as more users join the platform.
Direct effect
Direct network effect occurs when the value of service, product or platform increases as the number of user increases and it can help in causing growth of the network. It can include use of social media platforms that provide benefits from the direct network effect as it provides service value growth that has direct results for attracting more users. In this connection with the case stuyd, it has potential for joining other subgroups and it includes people’s commitment for ensuring the overall network of Wattpas with a deeper way that can ensure connection density and overall size of the network that imply by itself (Rebora and Federico, 2018). The direct effect is related with the case study as it can provides with the required upfront for the company for investment of physical and capital constraints.
Indirect effect
Indirect network effect is the platform or services that depend on two or more user groups. It includes groups like users and developers, producers and consumers and buyers and sellers. It includes a group for joining the platform and it can help in receiving a greater value. The effect occurs when the value of the network increases as the result of one type of node. It provides benefits to another type of node directly but it does not provide direct benefit to other nodes of the same type (Ramdarshan, 2018). It helps Wattpad in creating reading incentives for complementary users on the other side of the network for using the network that can be turned into benefits for all nodes on the same side. This network effect ensures that the platform of Wattpad gains more users with increased interaction.
Porter’s Five Forces
Competition in the industry
The competition of Wattpad is intense and it can be evaluated by the existing wattpad case. The company is having competition that includes both big companies and smaller competitors. The bigger platforms include Lulu and CreateSpace. These platforms are used by authors for uploading writing and it can reach more customers worldwide. The smaller competitor can build a niche for online reading communities and it includes sites like Young Adult-focused Swoonreads.
Potential of new entrants into the industry
The power of the company is also affected because of the force of new entrants in the market. It includes use of less money and time that costs for competitor’s entry in the market and it can be an effective competitor (Parnell, 2021). It includes more established company position. It is the part of the industry with strong ba
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