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From Morningstar's perspective, a firm has a "network effect" when the value of its service grows proportionately to the number of users.

I was thinking of a network effect with Volcom because it targets a certain sub-culture, the board-sporter. The larger the percentage of the sub-culture wears the brand, the larger the pressure on newcomers to identify themselves with the group by wearing the same stuff. This kind of peer-pressure is quite strong.

But I agree it may not grow proportionally and I have no idea if it's also the case for TRLG.

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