When distribution is proprietary, distribution wins
Examples
- Netflix vs comcast
- Microsoft vs Slack
- Azure's rapid rise leveraging Microsoft's entrenched position in corporate licenses
When distribution is commoditized, best product wins. Within product, global network effects win over local network effects.
Example
- Chrome vs IE
- Uber vs Lyft - duopoly because of local network effects, no product differentiation and no distribution advantage.
When product is commoditized, best service wins
- Amazon vs others
- Amazon is also taking the much harder route to establish value through better services and change distribution. For eg : Amazon now gets a larger share of the retail search traffic than google
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