10/08/2026
A company made billions selling… AIR! 😳💨
Sounds unbelievable, right?
But the real business isn’t the air — it’s the infrastructure.
Companies like Linde use a process called fractional distillation to separate oxygen, nitrogen and argon from the atmosphere.
But their biggest advantage comes from something else:
🔹 Dedicated pipelines connected directly to factories
🔹 Long-term take-or-pay contracts
🔹 Huge infrastructure investments
🔹 High switching costs for customers
🔹 Very high entry barriers
Once a customer is connected to the infrastructure, switching suppliers can become extremely expensive and disruptive.
The product is free. The infrastructure is the moat.
This is a great example of how a seemingly simple commodity business can become a powerful business model through infrastructure, contracts and customer lock-in.
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