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Beyond Popular Products, Why Your Most Profitable Product May Not Even Be Well Known By Customers

Beyond Popular Products, Why Your Most Profitable Product May Not Even Be Well Known By Customers

What is your one oasis [the best product] in that company? And what is your double play strategy? Note that companies must not necessarily make money from their most popular or visible products. Ask Amazon (ecommerce is popular, but money comes from AWS); Samsung (Galaxy is popular, but money comes from the chip business); etc. If you focus on copying that visible and popular product without the supporting double play elements, success may not come.

In the past, business was about controlling supply to move prices. Manufacturers had control of supply but they had limited direct control on the consumers [you can control how many newspapers you produce but you have no definite control on how many people would buy]. So, winning markets was really about managing and controlling distribution as most businesses were bounded and constrained by geography, creating advantages which were largely localized [the largest newspaper in a region controlled the top news of the day].

But today, the game has shifted from control of supply to control of demand for web-anchored consumer firms. And only companies with capabilities to control demand are going to win big. Indeed, most of the greatest internet companies are simply controlling demand and that means controlling how supplies reach users and consumers.

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Young People, 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. From there, you can design a double play strategy around your one oasis. I have included a video to explain here. Read how I explained it in Harvard Business Review here


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