“Building a successful business is hard. Many try, few succeed and those that do tend not to thrive for long. So success in business… should be respected,” Horace Dediu writes for Asymco. “Especially in highly competitive industries like technology. The fragility of success however should also give one pause to think about how delicate a business model is.”
“The presumption that companies can shift business models at will is usually false. Businesses are balanced on a knife’s edge of dependency on multiple variables. Almost all resources are expended on preserving this balance,” Horace Dediu writes for Asymco. “This being my observation, I take issue with assumptions that large companies can ‘pivot’ on a dime or that they can change their business models ‘when conditions are right.'”
Dediu writes, “The premise that Amazon can, on a whim, change its business model from selling other people’s products at a razor thin margin while investing in capital-intensive distribution to selling other people’s products at a large margin while not investing in capital-intesive distribution is not credible.”
Read more in the full article – recommended – here.
MacDailyNews Take: Personally, we can’t wait until The Washington Post reviews the next Kindle.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]