jeff bezos

Amazon Is Cutting Publishers Out of the Action By Dealing Directly With the Authors

In business school they teach you to analyze the supply chain in an industry, identify the fat cats making excessive profits, and then look for ways to displace them. Jeff Bezos and Amazon are masters at this disruptive growth strategy. They first did it by displacing book stores and selling direct to the public. (I’m the first to admit that this has had its downside as I have always enjoyed my trips to bookstores. Moreover, you couldn’t really call independent bookstores “fat cats,” but they were vulnerable to displacement.) Next Amazon launched the Kindle creating a new Blue Ocean market for digital books and helping to save a lot trees. Continue reading

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