In industrial age businesses, winning was about controlling supply to reposition price on the demand-supply curve. By controlling supply, it comes down to two key variables of the marginal cost – transaction and distribution costs. Scaling was severely bounded to geography because of that distribution cost.
But on the web, both components of marginal cost could largely “disappear” depending on the business model. If you plan to run an internet business, think about how you can control demand. You have already lost the power and capacity to control supply. Yes, anyone can use a credit card, irrespective of geography to buy anything online. The quantity you bring will not have material impact in the total pool in the market, for most products.
Simply, the power to influence through Supply is gone. Your only chance is to discover a new equilibrium point by influencing and controlling Demand. But how do you influence demand in the market? Hahahahaha
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