Could This Create a Network Effect for Nike?
A company benefits from a network effect when its business gets stronger with more users. This can play out in different ways in different industries. But for consumer-facing brands, they can get stronger when there's a social element tied into their products.
In this snippet from Motley Fool Live, recorded on June 15, The Motley Fool's Bureau Chief of Healthcare and Cannabis, Corinne Cardina, points out that apparel company Nike (NYSE: NKE) could be gaining a network effect from the investments it's making in its technology.
Source Fool.com
