A pathway to bypassing market entry barriers from data network effects: A case study of a start-up’s use of machine learning
研究一家中小企业如何通过关注与现有企业不同的利益相关者，并利用现有企业生成的用户数据获得合法性，成功进入受数据网络效应保护的市场。
Highly valued firms exploit machine learning to activate data network effects. Data is gathered and analyzed to generate predictions and recommendations. This loop locks in existing service users and locks out potential competitors, thus creating a sizeable entry barrier, particularly for small and medium-sized (SME) enterprises. The literature does not describe the possible pathways to enter markets protected by incumbents’ data network effects. This study examines an SME that successfully entered such a market. A key finding is that, for successful market entry, an SME can focus on different stakeholders from those that are targeted by incumbents, provided such stakeholders can legitimize the SME’s use of user data generated by incumbents.