How the most successful companies build moats that compound.
Key Insight
The most successful moats have multiple flywheels that feed off of each other’s momentum.
Google’s technical advantages enable stronger brand allegiance and vice versa. Coca-Cola’s marketing-driven brand feeds off its distributor/bottler-based network effects. Facebook’s brands have at least 3 reinforcing network effects: direct (social network), 2-sided aggregator (advertising and developers), and brand-driven social proof.
Why This Matters
Single moats erode. Interlocking flywheels compound. The framework here is about identifying which competitive advantages can reinforce each other — and building systems where winning creates more winning.