Aggregation theory is a business framework that was introduced by ben thompson. It explains why some businesses are so powerful and defensible. The most dominant companies become dominant by doing three things. First, they have a direct relationship with their customer. Two, there is zero marginal cost to serve their customer. And three, they have network effects.
Todays episode breaks down a business framework that explains why some businesses are so powerful, so defensible, and only get more powerful & defensible with each day that passes.
Listen to my episode on Network Effects here.
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