Describe the characteristics social media in the context of your answer in identifying the market structure?

Question: Describe the characteristics social media in the context of your answer in identifying the market structure?

Social media, in the context of market structure, operates largely as an oligopoly dominated by a few key players like Meta, ByteDance, and Alphabet, benefiting from strong network effects where user value grows with increasing participation. These platforms differentiate through unique features, like TikTok's short-form videos or LinkedIn's professional networking, while primarily monetizing through advertising and subscriptions. Barriers to entry are high due to the technological infrastructure and brand recognition required, but the market remains dynamic with constant innovation and competition. This structure creates a competitive yet concentrated environment where a few dominant platforms shape global digital interactions.