Yoga Panda<\/a>, a Seattle-area free mobile app that allows yoga students to book classes, often at great discounts, at multiple studios in town based on open mat space that has not yet filled. For students, the more studios that join the app, the greater the benefit (i.e. access to great classes). Similarly, for yoga studios that are on the app, the more customers join, the more they are able to fill up empty class spots. The concept is similar to ClassPass, except it does not restrict customers from the number of classes they can take, and does not charge a monthly premium. \u00a0It essentially democratizes yoga.<\/p>\nBear with me, because it might seem like a stretch to apply network effects to this company. \u00a0In traditional network effects, the more users that use a particular product, the more valuable the product becomes. In the case of MINDBODY, more businesses using MINDBODY software does not improve the businesses\u2019 or customers\u2019 value, thus network effects do not apply. By providing solely a product, and not a platform, MINDBODY is missing a huge opportunity here, which Yoga Panda and other similar apps are stepping in to capture. \nYoga Panda is really a platform, and not a product. Yoga studios sign on to offer open mat space that they can\u2019t fill, which yoga students are eager to fill at lower prices. Right now, because Yoga Panda is limited to the Seattle market, anyone could create an app for one or multiple other cities and take advantage of the gap in the market for providing a more convenient and less expensive customer experience in addition to a means of filling up empty classes. Because this idea is more customer friendly, it has the potential to build a much larger network of users, which will attract more yoga studios and potentially other businesses that offer fitness classes.<\/p>\n
If MINDBODY harnessed its customer data and offered its wellness students (the end users) the opportunity to register at multiple studios with one login and simultaneously provided yoga studios with an opportunity to fill empty slots in their classes, it could effectively \u00a0introduce network effects to an industry that is just beginning to catch on. Because it already has a large footprint and user base, transforming its offering from a software product to a platform would a) create stickiness with businesses and end users and b) would create a defensible competitive advantage (i.e. being THE connection between its\u00a0business user base and\u00a0its end user base). In this new model, the more studios and end users that sign up, the more valuable MINDBODY becomes as a way of connecting studios with students. Because it already has critical mass (i.e. tens of thousands of business customers), it is ready to tackle this challenge, before Yoga Panda and other similar student-friendly apps gain momentum and build a formidable user base, which will paint MINDBODY into a corner. Instead of connecting businesses and customers, MINDBODY will be painted as the back-end software provider to yoga studios, rather than the platform that connects studios and students. Will MINDBODY be able to transform their offering in time?<\/p>\n","protected":false},"excerpt":{"rendered":"
Yoga Panda, though a small, Seattle-based start-up, has introduced network effects into the yoga industry.<\/p>\n","protected":false},"author":111,"featured_media":941,"comment_status":"open","ping_status":"closed","template":"","categories":[191,421,423,21,420,14,422],"class_list":["post-940","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-app","category-mindbody","category-namaste","category-network-effects","category-platform-vs-product","category-yoga","category-yoga-panda"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/competing-with-network-effects\/","yoast_head":"\n
Yoga Panda \u2013 introducing network effects to the yoga industry - Digital Innovation and Transformation<\/title>\n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n\t \n