The network effect is one of the most resilient barriers to entry and one of the hardest competitive advantages to create.
Here’s a list of companies benefitting from network effects, sorted by their type of network.
Whats your favourite type of network?
Payment system
$Visa(V)$ $MasterCard(MA)$ $American Express(AXP)$ $PayPal(PYPL)$ $Block(SQ)$
Financial market
$Nasdaq(NDAQ)$ $Intercontinental Exchange(ICE)$
E-commerce / Marketplace
$Amazon.com(AMZN)$ $eBay(EBAY)$ $Copart(CPRT)$ $Shopify(SHOP)$ $Alibaba(BABA)$ $Etsy(ETSY)$
Social media
$Meta Platforms, Inc.(META)$ Facebook $Alphabet(GOOG)$ $Alphabet(GOOGL)$ YouTube $Microsoft(MSFT)$ LinkedIn
Software
$Microsoft(MSFT)$ $Adobe(ADBE)$ $Salesforce.com(CRM)$ $ServiceNow(NOW)$ $Autodesk(ADSK)$ $SAP SE(SAP)$ $Oracle(ORCL)$
Cloud
$Amazon.com(AMZN)$ Amazon Web Services $Alphabet(GOOG)$ $Alphabet(GOOGL)$ Google Cloud $Microsoft(MSFT)$ Microsoft Azure
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