Summary of Alex Moazed & Nicholas L. Johnson's Modern Monopolies

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The software economy is eating the world, but it’s platforms that are dominating the Internet and our economy. Collectively, platforms dominate the Internet and our economy.
#2 The dominance of platform businesses isn't limited to the United States. The economies of many developing countries were growing rapidly at the same time that Internet access became widespread. And because these countries didn't have the existing commercial infrastructure that developed economies did, their industries were shaped around the Internet.
#3 The company, Pets. com, was the most memorable company from the dot-com Super Bowl. It had a problem, however: Its business model was broken. The company had high fixed costs and had to price low to compete with existing pet stores, even though many of these stores already had razor-thin margins on pet food.
#4 In 1995, a computer programmer wrote code for a website that would become known as eBay. It was a digital marketplace where people could buy and sell anything over the Internet. Its revenue grew by 1,200 percent in its first year.

Sujets

• Industrie
• Business
• Economics
• Informatique
• Industries
• Computers
• Information Technology

Informations

• Publié par: Everest Media LLC
• Date de parution: 17 mai 2022
• Nombre de lectures: 0
• EAN13: 9798822514379
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Alex Moazed & Nicholas L. Johnson's Modern Monopolies
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8
Insights from Chapter 1

#1

The software economy is eating the world, but it’s platforms that are dominating the Internet and our economy. Collectively, platforms dominate the Internet and our economy.

#2

The dominance of platform businesses isn't limited to the United States. The economies of many developing countries were growing rapidly at the same time that Internet access became widespread. And because these countries didn't have the existing commercial infrastructure that developed economies did, their industries were shaped around the Internet.

#3

The company, Pets. com, was the most memorable company from the dot-com Super Bowl. It had a problem, however: Its business model was broken. The company had high fixed costs and had to price low to compete with existing pet stores, even though many of these stores already had razor-thin margins on pet food.

#4

In 1995, a computer programmer wrote code for a website that would become known as eBay. It was a digital marketplace where people could buy and sell anything over the Internet. Its revenue grew by 1,200 percent in its first year.

#5

Linear businesses are those that have a product and sell it to a customer. The value flows from the company to the customer in a linear fashion. Examples include product companies, distributors, and resellers.

#6

The second type of linear business is a services company. These companies hire employees who provide services to customers. They generally fall into one of two camps: making and selling physical services, or building human capital or intangible assets and selling specialized services.

#7

In the twenty-first century, the supply chain is no longer the central aggregator of business value. Now networks connect businesses and individuals, enabling them to exchange value among themselves. This is the essence of how platform business models work.

#8

The dot-com bust was a crash course in the difference between old and new business models. The Internet was supposed to make dealing with customers cheaper and easier, but for many businesses, this never became a reality.

#9

eBay was a platform that allowed people to buy and sell goods online. It was profitable from its first month all the way through to its successful IPO in 1998, and it enjoyed gross profit margins of more than 80 percent.

#10

Platforms are businesses that facilitate the exchange of value between two or more user groups. They create communities and markets that allow users to interact and transact. The most successful platforms to date are Google and Apple, whose rise to the top in mobile we discussed in the prologue.

#11

Platform business models enable companies to expand at a pace never before seen in human history. When a linear business gains a new customer, it adds only one new relationship. When a platform adds a new user, that person doesn't add just a single relationship but rather a potential relationship with all of the platform's users.

#12

When we use the word platform in this book, we are referring to a business model that creates value for customers and money then flows back into the company. Very few companies actually understand the model they are trying to emulate.

#13

The most common misuse of the term platform is when it’s used to describe an integrated suite of software products. In such cases, the word platform is just being used as a marketing term.

#14

Linus Torvalds is the creator of Linux, an open-source operating system that is the dominant operating system for Web servers and supercomputers. Linux is free, both free as in speech and free as in beer.

#15

GitHub is a content platform for programmers that was created in 2007. It made it easier to manage a large open-source project like Linux, and it also allowed you to easily create and maintain your own version of Linux.

#16

GitHub, a software platform, makes it easier for developers to manage software projects. It significantly reduces transaction costs for people collaborating on software projects. Transaction costs arise because markets and communities in the real world aren’t like the perfect markets you learn about in Economics 101.

#17