added by Tekelala · updated 2y ago
Differentiation and Value Capture in the Internet Age
- Over time, though, the Model T was very much a victim of its own success: by massively expanding the market for cars and triggering the development of car-friendly infrastructure, Ford created openings for other car manufacturers that previously didn’t exist. A company like General Motors didn ’t need to compete with Ford by building a Model T clone... See more
from Differentiation and Value Capture in the Internet Age by Ben Thompson
Tekelala added 2y ago
- That’s why I loved her decision to pull out of Spotify. Taylor Swift is not some sort of Luddite futilely standing against the forces of modernity; rather, she is a highly differentiated content creator capturing the immense value she is creating instead of ceding it to an aggregator that treats every piece of content the same.
from Differentiation and Value Capture in the Internet Age by Ben Thompson
Tekelala added 2y ago
- It’s hard to have a conversation with anyone in tech without the word “scale” entering the conversation; “Internet scale” is a particularly popular variation of the term. Scale is a concept that is at the root of most venture investing: because software has zero marginal cost – one copy costs just as much as 100, or one million – there are massive ... See more
from Differentiation and Value Capture in the Internet Age by Ben Thompson
Tekelala added 2y ago
- It’s easy to think that the Internet Age is well-established, but the truth is we’re only getting started. Remember, it took nearly two decades for the Model T to develop the car ecosystem to the point where new opportunities emerged to offer differentiated vehicles at much higher prices and much greater per-unit profit (Mercedes-Benz, for example,... See more
from Differentiation and Value Capture in the Internet Age by Ben Thompson
Tekelala added 2y ago