Sublime

The dilemma for networked products is stark. Embrace the professionalization of the hard side, and reap the benefits of increasing scale. Yet this leads to power concentration, and potential misalignments—though hopefully no protests outside your windows. Or reject the trend, and see the hard side struggle with

Competition for the deal must be deployed in a nuanced way—seemingly small process choices can have big substantive implications.

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

“the gospel of 10x.”

So, participation is risky in that sense.