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Being a distributor is no better than being a producer. They have different strengths and are reliant on each other. Who holds the power in the relationship is
by shanghaiaway 8y ago
Being a distributor is no better than being a producer. They have different strengths and are reliant on each other. Who holds the power in the relationship is cyclical.
All platforms rise and eventually decline. Amazon has already started going downwards after it sacrificed quality in its chase for scale by opening up its platform to third parties and their counterfeits. Similarly, we'll see ecommerce in China move from Tmall to independently owned stores that allow for differentiation, higher service quality, and owning the customer relationship. Just like offline stores are now coming back, for the same reasons.
- gesman 8y agoThere is a reason platforms decline. Biggest one is when platform gets too fat and lazy and then torn apart by competition (Myspace, Aol). If competition is too weak (AMZN) or platform is too strong (GOOG) - the decline is afar. That said - I think the biggest and quickest riches are made by connecting supply and demand (platforming) instead of owning either of these.
- shanghaiaway 8y agoAmazon is fat and lazy now. They grew by offering the lowest prices on products you know, with fast shipping. Now, you don't know what you're buying or that you're getting the best price, and shipping isn't as fast.