Joel Spolsky

Ben & Jerry's vs. Amazon: which kind of company are you building?

Sam relays Joel Spolsky's framework: decide if you're in the 'Amazon' camp (winner-take-all, get big fast, lots of capital, strong network effects) or the 'Ben & Jerry's' camp (crowded market, weak lock-in, little capital, break even quickly). The choice dictates every other decision.

“You have to decide, are you in the Ben Jerry's model or the Amazon model? And the Ben Jerry's model is basically— or the Amazon model is basically you have to get big fast because you're using some type of new competition or new technology where there's very little competition at first and the winner takes all type of market.”

Steal thisBefore building, decide if your market is winner-take-all (go big fast) or fragmented (stay lean and profitable).