Chen's Cold Start Theory has several practical implications. It provides a framework for understanding and navigating the growth of network effects. It helps in identifying and solving the Cold Start Problem, which is the initial hurdle of getting a new user or participant in a network. It also provides insights on how to achieve the tipping point, which is the stage where growth becomes self-sustaining. Furthermore, it guides on how to reach escape velocity, the point where growth is not just self-sustaining but accelerating. It also helps in managing growth plateaus and in building a moat, which is a sustainable competitive advantage.
When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it...
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