Sublime

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

When only a single firm in the entire industry is profitable, then the commodity in question may be at or near the bottom of the cycle.

But a great business is defined by its ability to generate cash flows in the future. Investors expect Twitter will be able to capture monopoly profits over the next decade, while newspapers’ monopoly days are over.

Economic Effect means that the leading network often has a better business model. Products with a strong Economic Effect are able to maintain premium pricing as their networks grow, because switching costs become higher for participants who might be looking to join other networks.

a business like specialty coffee retailing, for example, where entry barriers are low, Starbucks must constantly invest to refresh its stores and its menus. If it slacks off, it effectively opens the door for a new rival to join the fray.

high market share with the wrong business design, is more of a curse than a blessing.