Strong moats, including those built upon regulatory capture and especially those built on network effects, can also lead to winner-take-most markets. This is where one company, once it reaches critical mass (see Chapter 4) through its network or dominant position based on another sustainable competitive advantage, effectively wins the market by taking most of the customers within it. For example, with more than two billion people on Facebook, a competitor won’t find it easy to re-create that network and compete with Facebook’s core offerings.
