Know the Wide Implication of Network Economy In Present Day
The term network economy effective altruism is defined as the effect in economics and business that a user of product and services has on the value of that product to the others. The network effect depends on the value of goods or services on how or rather the number others are using it. The example of such kind is a telephone, in which the value increases simultaneously with a greater number of users. If you talk about online social networking platforms like twitter and facebook they also work on this phenomenon as to increase in the value of each and every user after any individual joins the network.
The Concept of Critical Mass
The effect of it becomes significant after it has reached certain subscription percentage which is often referred to as critical mass. Critical mass is referred to as the value that is obtained from the products and services are higher than or equivalent to the price paid for the product and service. Thus the main objective of the business is how to reach the critical mass. This can be done by relying on extrinsic motivation like payment, fee waiver or may be asking friends to sign up. The most effective way to attaining this objective is by to develop a system without network effective altruism effects. Thus when the number of the user increases gradually the system becomes more and more valuable and a wider range of user will get attracted toward it.
Impact of Network Economy towards the GDP
As we are familiar with the internet these days and know how effective is it to deal with business, educational, political purposes and much more. The internet provides great connectivity between people from a different section of the world easily and conveniently. Thus it can solve lot problems that are either within the organization or away from it and thus adds value to the growth of the country economy.
Nowadays the government has understood that there is a wide range of opportunities open in order to increase the Gross Domestic Product. So they are targeting on a digital channel and e commerce. Thus the concept of network altruism along with Social enterprise can provide great impact on the country economy. There is no doubt using such concept can help in storing more amount of data as well as producing it and thus improve the efficiencies among the people of the community.
How the Economy Has Shifted Toward the Network Economy
It is true that there is a lot of uncertainty in this concept as well there is no end game of it, but the network economy effective altruism thing is changing all the rules, the process and structures have changed. Previous the concept emphasizes the capacity to sell the product for the sake of personal gain but these days you need to communicate with individuals, communities, organizations in order to get success in your business plans. So there is no doubt to say that Social enterprise economy with altruism is a new concept and the change has begun already and things are not going back so it is recommended to get upgraded with relationship skills and get invested in a wide range of social relationship which will help you to various strengths.