- inelastic or sticky demand - weaken balancing loop - barriers to entry, bargaining power of buyers and suppliers - book and music are well-categorized (3milion) ## Amazon - reinforcement loop: complementary selection, attractive markets, scale and power - customer's loyalty: recommendation engine' quality goes up customer sastisfaction goes up - worker's pride -> job satisfaction goes up enhancing the qua (increase capability) ## Walmart - production efficiency - cost - demand +tech investment or + production efficiency - revenue + tech investment + logistic efficiency + revenue - price - market size + potential customers - market share (competitive) - `learning by doing`: sales + learnig - costs - price - attractiveness ## Apple - `WOM`, quality and esctatic of product - `network effect` interact - `complementary` ecosystem + users - Recycle reward: which motivate users to buy the next generation of iphone (if they use I don't know ); credit, platform effect ## Uber - passengers + drivers + passengers / supplier grows, waiting time decreas - referral `Impact, inertia, synergy, limits` - amazon has high inertia, but having low inertia is not always good bc that means competitor are easy - `sequency` investmenst in loops to maximize performance - strengthening reinforcement loop hit back! ## Drivers of product attractiveness - attractiveness = f(price, feature, compatibility, content) - comparison of the marginal increase of return for each sector (price, user, users, complement - attractiveness) early on focus on a niche market where loops can work for you and can push you up fast enough (e.g. Amazon book) - loop: 1. reduce competition (balance loop) 2. enhance product attractiveness (often by reinforcing loops)