More than 80% of the most successful digital (especially web-based) tech companies run this business model: Aggregation-Integration Construct. In this piece, I argue that the empires of the future, in this web economy, will be built on the business model. If you are building and you want to become a category-king in the online business, pay attention to AIC.
From Facebook to Google to Amazon, this business model powers the very best in them.
Also, I posit that if this model has brought a new basis of competition, improving marginal cost efficiency in many business sectors, it will anchor and become the foundation of the future. All businesses will become technology companies and those with tech nativity will dominate. As we digitize and take more sectors to the web, AIC will be catalytic in the new ordinance.
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I explain in this video.
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The model will encounter major challenge of not allowing many players to gain market share, so it will then tire out and evolve into smaller units, for more players to participate.
We cannot have 20 Facebooks or YouTubes doing well at global level, it’s always one, two or three per category, then leaving others to be also rans.
Regional and community level platforms will gain prominence overtime, because the very top has been cornered by few guys, from just a handful of countries; some sort of revolt will alter the equilibrium, then more participants would gain some foothold.