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What actually is a wedge

What actually is a wedge?

Who is allowed to say yes?

Check: the missing cost

Why the incumbents could not simply copy it

What does expansion cost the wedge?

Check: who actually approves?

Where the growth actually came from

Worked Example: running the wedge test on the 2010 entry

Check: why the incumbent sat still

Expert Depth: two kinds of switching cost

Expert Depth: coherent adjacency versus diversification

Check: has the wedge dulled?

Practice: test a wedge you can observe

Check: coherent or just adjacent?

This module examines how a new entrant attacking an entrenched market can judge whether its wedge will widen into a platform. It works through three tests: what specific friction the wedge removes, whether the person relieved of that friction can say yes on their own, and what the firm will later have to add back that re-creates the friction it originally removed.

Take a new entrant attacking an entrenched market and judge whether its wedge can actually widen into a platform, by testing what specific friction the wedge removes, whether the person relieved of that friction is allowed to say yes on their own, and what the firm will later have to add back that re-creates the friction it originally removed.

How a Wedge Widens, and What It Costs

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