### **Motte-and-Bailey Strategy** - **Definition:** A layered defense strategy where the bailey provides short-term growth and the motte offers long-term protection. - **Use it when:** You want to scale fast but build staying power over time. ### **Network Effects** - **Definition:** Each new user makes the product more valuable for others. - **AI Example:** ChatGPT getting better with more user queries. ### **Personal Utility Network Effects** - **Definition:** The product becomes more useful the longer a user interacts with it. - **AI Example:** An AI co-pilot that learns your unique preferences. ### **Hub-and-Spoke Effects** - **Definition:** A central platform promotes a few nodes (users, content, agents), which then gain asymmetric value. - **AI Example:** Character.AI promoting a bot that then gets millions of chats. ### **Switching Costs** - **Definition:** Pain or value loss a user experiences if they stop using your product. - **Tactic:** Embed memory, team collaboration, and shared context. ### **Distribution Advantage** - **Definition:** Outperforming competitors in reaching, converting, and retaining users. - **Tactic:** Build viral loops, content marketing, or exclusive partnerships. ### **Brand Defensibility** - **Definition:** Trust, identity, and preference that gives you staying power even when features are matched. - **Tactic:** Build emotional connection and strong product polish. ### **Embedding** - **Definition:** Integrating into the user’s daily workflow so you're hard to rip out. - **Tactic:** Provide mission-critical tools or integrations (e.g. Cursor in dev teams). ### **Scale Advantage** - **Definition:** Using growth to accelerate data, compute, and performance flywheels. - **Tactic:** Build infrastructure that improves with usage. ### **Sequential Defensibility** - **Definition:** Timing each layer of defense — start with speed, then embed and lock in. - **Tactic:** Observe signals, deploy new defenses as you scale. ### **Switching Cost Test** > “What happens if I stop using this product?” **Strong answer:** “I’ll lose months of team context and workflows.” ### **Collaborative Value Test** > “Is this product better when others use it too?” **Strong answer:** “It’s exponentially better when my whole team uses it.” ### **AI Agent Networks** - **Definition:** Interoperable AI agents that communicate, share tasks, and coordinate. - **Future Trend:** Early examples include LangChain and AutoGPT.