3 ms·
Standard Oil's vertical integration brought low prices to what was essentially a process that has a single input and a handful of outputs. The vertical integrat
by saosebastiao 10y ago
Standard Oil's vertical integration brought low prices to what was essentially a process that has a single input and a handful of outputs. The vertical integration of Amazon would involve billions of inputs and billions of outputs. They aren't even remotely comparable, and it is likely that, due to diseconomies of scale, a vertically integrated Amazon would be less efficient than they currently are.
- dmix 10y agoI was talking specifically about Amazon Fresh and the retail grocery market. Not Amazon as a whole. The input/output dynamics don't change very much in that context (by strictly producing commodity style products), except the potential for higher-margins and more efficient distribution channels.