Lenny Rachitsky: uncertainty

Transcript context

…nk of Google and their ability to improve search based upon all the searches that go on on their base every day. It's very hard for Bing to catch up because Bing doesn't have as much data to train on. And so unless there's some new innovation there that isn't just the amount of data, the leader again has this asymmetry working for it. Now, the way you get around all that is by being specialized, by owning a particular approach that isn't the market leader's approach. And it's always been that way in business, but our attention is often attracted by these giants. So yeah, sources of power today where we look at the new business models that are part of the fabric are these network effects and things like that that are very, very strong. And people are trying to get those in startups and in small firms within a certain market space and build it as fast as possible to get ahead of others. There's been venture capital available to try those experiments and some of them work and some of them don't, but that's this new age we're in now, where the speed of building a market position with network effects is a dominant game in the tech space. I feel like Twitter is the ultimate example of the power of network effects, especially recently where if you think about it, everything about Twitter has changed and it still continues to run. You laid off 80% of people at the company, they changed the name, they changed the domain basically, the algorithms changed. I don't know what is still the same. How can you lay off 80% of the people and it still runs? I mean you got to wonder.…

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