𐃏 Advantage Flywheels →June 14, 2020 • #
A helpful resource here for understanding flywheels, the “causal loops” of different types of businesses. The reference examples show how the most successful companies ramp up the gear ratio by combining multiple flywheels to compound effects:
The most successful moats have multiple flywheels that feed off of each other’s momentum. Google’s technical advantages enable stronger brand allegiance and vice versa. Coca-Cola’s marketing-driven brand feeds off of it’s distributor/bottler based network effects. Facebook’s brands have at least 3 reinforcing network effects: direct (social network), 2-sided aggregator (advertising and developers), and brand-driven social proof.
- Economies of Scale in Construction — Brian Potter starts a series to analyze the seeming lack of economies of scale in construction.
- 2020 Bundles — Ben Thompson's updated state of bundling across the big tech players.
- Laws of Tech: Commoditize Your Complements — Gwern's analysis of Spolsky's 'commoditizing your complements' essay.