Own the Demand

The internet enables Aggregators to shift the chokepoint in the value chain from supply to demand. The monopolies of the 20th centuries - U.S. Steel, Standard Oil, American Tobacco - exerted power through their control of supply. The largest companies in the 21st century are winning by first controlling demand, and using the strength and scale of t... See more

Aggregators can leverage their demand ownership, data advantage, and superior customer experiences to capture more of the profits in their value chain.

It’s humbling to realize that we have very little control over the will of the people we seek to serve. Just like you can’t make a tornado with a $35 desk fan, you can’t create demand. This is one of the hard lessons the bro marketers and category creationists don’t tell you.

Your goal is to position in a category that’s in demand and that your segm... See more

Ben Thompson described this phenomenon in his signature aggregation theory. Pre-internet, you captured profits by controlling supply. Now, post-internet, you capture profits by aggregating demand.