“If you want to create and capture lasting value, don’t build an undifferentiated commodity business.”
Most of you who clicked this article would consider me a fool to write a story like this. Amazon is THE biggest E-Commerce giant in the world and anyone who thinks it is not is downright dumb….Right.
Amazon emerged in the year 1995 as a retailer to sell books online. From there we saw an exponential evolution to what it is today. Amazon now sells anything from clothing, electronic gadgets to even fresh fruits with the acquisition of Whole Foods. With every passing…
The Law of Conservation of Attractive profits states that
When a product starts to become a commodity, a decommoditization process is often triggered somewhere else in the value chain. Managers might therefore be able to predict which activities will generate the most attractive profits in the future.
You might be thinking, How this is related to Journalism?.
Let me explain.
The first newspapers were designed to popularise sensational content for the public. This produced a commodity which slowly emerged to be one of the biggest industries in the years that followed. Competitors fought between each other to bring the best…