1) Economics of scope :-
WhatsApp share common platform and diversify by generating social, taking charges for WhatsApp business and data base management etc.
2) Oligopoly competition :-
Few apps are available are there in the market and not everyone can be successful.
3) Barrier of entry (Network effect):-
Because watsapp is already having a user base of 1.5 billion with the help of Facebook new entries are near about nill. Everyone seem to be in watsapp and because of its features it is also very popular.
4) People respond to incentives:-
The subscription charge which was supposed to be $1 was brought to 0 which lead to people not leaving watsapp.
5) Economics of scale:-
The fixed cost to create the app was not much and the variable cost is for maintenance of the server only so for one time investment they are increasing their users number.
No comments:
Post a Comment