I discuss three mental models that indicate competitive advantage. Moats, Trojan Horses and Flywheels. And conclude that the Jim Collins' Flywheels model works best.
I hope this post reaches more and more people. Surprised that this goldmine has no engagement.
Spotify and Uber are classic examples of this flywheel.
Uber -
Low prices -> attracts more consumers -> attracts more drivers -> demand supply match -> repeat
Spotify uses the Costco flywheel - economies of scale combined
Low prices -> attracts more consumers -> attracts more artists for monetisation -> increase in returns for Spotify -> use that capital to invest in enhancing user experience -> repeat!
Similar - ish flywheel for Netflix.
Flywheels can be used for content creation also. Something I pitch to my personal branding clients:
Post > comment > get noticed > build authority > repeat.
I hope this post reaches more and more people. Surprised that this goldmine has no engagement.
Spotify and Uber are classic examples of this flywheel.
Uber -
Low prices -> attracts more consumers -> attracts more drivers -> demand supply match -> repeat
Spotify uses the Costco flywheel - economies of scale combined
Low prices -> attracts more consumers -> attracts more artists for monetisation -> increase in returns for Spotify -> use that capital to invest in enhancing user experience -> repeat!
Similar - ish flywheel for Netflix.
Flywheels can be used for content creation also. Something I pitch to my personal branding clients:
Post > comment > get noticed > build authority > repeat.
thanks for your kind words :-)