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The Moat Map
Business questions must begin with the customer. Platform owners, for example, may find it hard to identify their customers. Platform owners act as intermediaries between different market sides. By connecting the "sides," indirect network effects can be harvested. Buffett and Munger describe network effects as the strongest they have ever seen in G... See more
The “Free Parking” Business Model
Dominant companies across different eras all discovered the same basic truism of capitalism: if you control the entire supply chain, you can print money while your competitors slowly die gasping for air.
Carnegie Steel pioneered this in the 1870s-1890s with the realization that steel is more profitable when you own everything from the holes in the g
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This virtuous circle of supply-side economies of scale and network effects explains why tech companies so easily challenge our understanding of corporate strategy. Their increasing returns to scale, a byproduct of the technology they masterfully exploit, is their true competitive advantage. With increasing returns, those companies’ large scale is s
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