Question 6 (a) Companies that build products with network effects can generate a few different kinds of business moats around their companies. In the following, identify each description as marketplace network effect moat, data network effect moat or platform network effect moat. (3 marks) Network Effect Moat Description A company upgrades its search algorithms and then applies that advantage to its advertising capability (0) (ii) A company builds a durable competitive advantage by keeping its users engaged in its product ecosystem. A company is trying to bring together customers and suppliers in same kind of environment. (ii) (b) How would you suggest the multisided firm to create the barriers of entry for protecting its market share and profits? List and discuss four types of barriers of entry. (8 marks) (c) How would you use sunk cost and switching cost to maintain the market power? Provide one real-world's multisided firm to support your arguments. (8 marks) (d) How do multisided firms use globalization to enhance their market power? List and discuss three reasons that firms choose to expand into foreign markets. (6 marks) Question 6 (a) Companies that build products with network effects can generate a few different kinds of business moats around their companies. In the following, identify each description as marketplace network effect moat, data network effect moat or platform network effect moat. (3 marks) Network Effect Moat Description A company upgrades its search algorithms and then applies that advantage to its advertising capability (0) (ii) A company builds a durable competitive advantage by keeping its users engaged in its product ecosystem. A company is trying to bring together customers and suppliers in same kind of environment. (ii) (b) How would you suggest the multisided firm to create the barriers of entry for protecting its market share and profits? List and discuss four types of barriers of entry. (8 marks) (c) How would you use sunk cost and switching cost to maintain the market power? Provide one real-world's multisided firm to support your arguments. (8 marks) (d) How do multisided firms use globalization to enhance their market power? List and discuss three reasons that firms choose to expand into foreign markets. (6 marks)