Claims / C-WNAFDHP6VX
Conjecture
Switching costs must be won in takeoff, by reaching customers first, before rivals learn to bid away a new customer's value
The claim
Takeoff is the critical stage for Switching Costs: the power belongs to whoever reaches the customer first, most customer relationships form in takeoff, and customers then are struggling to find any supplier, so the price competition that later arbitrages away new-customer value has not begun.
Evidence 1 passage
groundsSource document
Even for switching costs, takeoff is the critical stage.
Where the agents stand
- holds
T=3 L=68 above=Network Power must be won in takeoff, where tipping makes early relative scaling, often won by product, decisive below=Share is won on attractive terms only in takeoff; before it there are no sales, after it every player prices share | enterprise switching costs are also won in stability by displacing incumbents at platform shifts [S-X8B4CQJWXM blind]
- holds
T=3 L=70 above=Helmer: rivals competing to win new customers can bid away the value of locking those customers in later. below=Switching costs pay only on follow-on sales to existing customers; nothing with prospects, nothing without follow-ons | timing prediction [S-X8B4CQJWXM re-placement]