What is Positive Feedback Effects?

Increasing returns are the tendency for that which is ahead to get further ahead for the which loses advantage to lose further advantage.

 

1. Providers, who once achieved a dominating market share, can extend their competitive position even further.

2. Inferiror competitors become increasing less significant.

 

Zum Beispiel:Windows System

 

1. Developing Windows system with some useful components

2. So that to increase attractiveness of the Windows System for Customers

3. then more and more functions will be integrated into Windows

4. that's to increase Switching cost of Customers to switch to the Linux

5. and decrease the probability of a system change

6. more customers will use Windows

7. so that it will increase the sales volume of Windows

8. more software providers will realize Windows becomes more and more popular in the world

9. so that they will provide more 3rd party applications for Windows System.

10. therefore, it will be more and more components for Windows

11. and more and more customers will buy Windows System

12. As it is a digital product, the unit cost of Windows will be declined.

13. so the price of Windows will be fell down so that to take the advantage of the price (compare to Mac)