Business & Strategy
Business models, positioning, pricing, and advantage
-
Value Proposition
A value proposition names the customer, problem, outcome, and reason to believe.
-
Unit Economics
Unit economics test whether one customer creates or destroys value.
-
Positioning Is Context
Positioning determines the comparison customers use to judge an offer.
-
Pricing Communicates
Price affects both economics and perceived meaning.
-
Moats Are Reinforcing
Durable advantage usually comes from systems that strengthen with use.
-
Strategy Means No
A strategy concentrates scarce resources by excluding attractive options.
-
A Business Model Is a System
A business model describes how value is created, delivered and captured, and the three must fit each other.
-
Customer Concentration Is Risk
When a large share of revenue comes from few customers, those customers hold pricing and survival power over you.
-
Distribution Often Beats Product
A worse product with reliable access to customers usually outsells a better one without it.
-
Switching Costs Cut Both Ways
Costs that make customers reluctant to leave also make prospects reluctant to arrive.
-
Scale Changes the Problem
Approaches that work at one size often fail at ten times that size, because the constraint moves.
-
Competitors Respond
An advantage based on an action a competitor can copy lasts only until they notice it is working.