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How a company chooses where to compete
Positioning defines the customer, value and trade-offs that shape a distinct offer.
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Does Costco really make all its profit from membership fees?
Costco · 5 min
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Cold-start problem
Growth · 6 min
Case
Why does IKEA make you do so much of the work?
IKEA · 5 min
Concept
Positioning
Strategy · 6 min
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Pricing power
Economics · 7 min
Concept
Network effects
Strategy · 7 min
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Moats
Strategy · 6 min
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Switching costs
Strategy · 6 min
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Adobe
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Airbnb
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American Express
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Apple
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Bank of America
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How businesses grow
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Network effects
Value increases as more people join.
Economies of scale
Unit costs fall as you grow.
Virality
When users bring users.
Distribution advantage
Being where others can't be easily.
How businesses defend
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Pricing power
Charge more and keep demand.
Switching costs
Why leaving is hard.
Moats
Defensible advantages that last.
Brand
Perception that compounds.
Data advantage
Unique data improves over time.
Platform lock-in
Control the ecosystem.
Cases
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IKEA · Case
Why does IKEA make you do so much of the work?
5 min read
Costco · Case
Does Costco really make all its profit from membership fees?
5 min read
Trending questions
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Why is IKEA so hard to copy?
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