Concepts
The ideas that explain how businesses grow, defend their position, and make choices.
How businesses grow
Network effectsValue increases as more people join.
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Economies of scaleUnit costs fall as you grow.
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ViralityWhen users bring users.
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Distribution advantageBeing where others can't be easily.
›How businesses defend
Switching costsWhy leaving is hard.
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BrandPerception that compounds.
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Data advantageUnique data improves over time.
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Platform lock-inControl the ecosystem.
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MoatsDefensible advantages that last.
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Pricing powerCharge more and keep demand.
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PositioningChoose whom to serve—and what to leave out.
›How businesses create markets
Two-sided marketsMatch two sides that need each other.
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BundlingMore value together than apart.
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Cold-start problemWhy new networks start empty.
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