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Why not fork instead of pivot?

Why do we have to do this other thing too, instead of having a subsidiary that does that other thing?

Is it because we've vastly overestimated the power of the network effect?

Why not fork instead of pivot?

Remember Qwikster?

That wasn’t a fork though. Qwikster was Netflix separating itself into two distinct businesses with very different offerings (movies by mail vs streaming).

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