Article Tags : Amir Efrati . distributor . dominate a niche . entrepreneur . Google . monoply . narrow niche . niche . niche marketing . r&d . Small business . wall street journal
The Wall Street Journal article by Amir Efrati says Google is after new sources of revenue.
Google’s actions signal cear emerging message:
Google will copy the most successful business models and compete with its customers.
Here’s the bottom line:
1. Google is a massive distributor
2. Large distributors take on clients; use the best to build their distribution channels and power
3. Then, replace them and/or compete with their own clients
Retailers do the same thing. When I was in the food business we’d sell to a large supermarket in the Northeast. They’d give you big orders. Watch how well you did.
Once they got you hooked on large orders, they’d start re-negotiating your price down until you had little margin left.
Next, they’d throw you out and start up a similar line.
You spent your resources being their R&D guinea pig.
Google is no different. Monoply-like distributors have done the same with energy, telephones, television, radio and computer operating systems.
That is why if you have a narrow niche you can dominate which has hungry buyers with buying power, the better off you will be.