| power | definition | moat metric | example | |----------------|-----------------------------------------------|--------------------------------|----------------------------| | scale | unit cost declines w/ volume | minimum efficient scale (mes) | tsmc's chip fabs | | network | value ↑ with # of participants | cross-side network effects | visa's payment network | | switching cost | customer locked-in, high cost to switch | customer lifetime value (clv) | enterprise software | | branding | habitual purchase via emotional connection | price premium vs competitors | coca-cola | | cornered | exclusive access to scarce resource | resource control % | de beers diamonds | | process | superior system that's hard to replicate | operational efficiency delta | toyota production system | | counter-pos. | first mover w/ hard-to-copy differentiation | time to replicate (years) | google's search algorithm | #strategy #business #competitive-advantage