How they do it: Through the personal nature of a user’s Facebook network of friends, switching costs to other platforms are increased with a larger network of friends on the platform.
Learn more about Facebook →
How they do it: Nespresso coffee system is protected by more than 100 patents. This allowed the company to keep competitors from selling coffee capsules compatible with the Nespresso system. However in recent years some patents expired leading to multiple brands manufacturing and selling Nespresso compatible coffee capsules.
Learn more about Nestlé Nespresso →
How they do it: LinkedIn has several mechanisms in place to keep the communication and exchange between users on their platform. One example is that it is not possible to send email adresses in initial contact requests for free users. In addition, the platform’s value to the individual user grows with its network, increasing the barrier to switch to another network.
Learn more about LinkedIn →
How they do it: With purchasing Sega Dreamcast, a video game console system, customers were locked into the particular ecosystem of controllers and video games. Competitors’ video games, for instance, were not compatible with the Sega system. Therefore, owners of a Sega-console were limited to titles released for its dedicated platform.
Learn more about Sega →
How they do it: Data lock-in risks become evident when you need to move your data from one software vendor’s systems or servers to another. Companies using SAP’s software are locked in to the SAP ecosystem and may face difficulities in organizational rigidity and switching costs when deciding to switch to a competitor’s system, leading to a competitive advantage of SAP.
Learn more about SAP →