Invest Like the Best with Patrick O'Shaughnessy Alex Moazed – Building Modern Monopolies - [Invest Like the Best, EP.25]
Feb 21, 2017
AI Snips
Chapters
Transcript
Episode notes
Platform Model Resurgence
- Platform models resurface by digitally connecting fragmented networks of producers and consumers.
- Technology, phones and data made platform economics dominant versus linear value chains.
Inventory Off The Balance Sheet
- Linear businesses put inventory on their balance sheet; marketplaces keep it off and take commissions.
- This shift changes revenue recognition and margin dynamics for firms like Amazon.
Platforms Cut Transaction Costs
- Platforms reduce duplicated overhead by separating matching from fulfillment.
- They cut search, coordination and pricing opacity to lower transaction costs for fragmented industries.