Commoditizing Suppliers
Aggregators, by virtue of owning demand, gain power over suppliers which become modularized and commoditized.
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The Moat Map describes the correlation between the degree of supplier differentiation and the externalization (or internalization) of a company’s network effect.
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Ride-sharing is a winner-take-all market that depends on controlling demand more than it does supply.
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Publishers are trying to threaten Google again, apparently unaware that because of the Internet they have no power: that flows to the platforms that control discovery.
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Why Do Carriers Subsidize the iPhone?
Horace Dediu at Asymco used the data I compiled1 in “The Case for the Low-Cost iPhone” to further elucidate why carriers tolerate the iPhone’s industry-leading subsidies. The presumption behind smartphone usage is that it leads to more browsing which leads to more network usage which in turn, leads to more network revenues and, finally, more network…