by Brian Balfour
A historical framework explaining how major platforms (Facebook, Google, iOS) evolve from open ecosystems to closed gardens. Understanding this cycle allows companies to capitalize on the 'Step 2' growth window before the door shuts.
Core Principles
- 1.Step 0 - Market Conditions: Identify when a new category has consensus but no clear winner (e.g., current AI Chat battles).
- 2.Step 1 - The Moat: Recognize which player identifies the defensible moat first (for AI, this is Context and Memory).
- 3.Step 2 - Platform Opening: Aggressively build on the platform during the 'value exchange' phase where they trade distribution for third-party utility.
- +1 more...
"The cycles seem to be getting shorter and shorter, so you actually have a smaller amount of time... If you don't do it, your competitors are going to go to the new platform and your customer expectations change."