# Aggregation Theory

Source: https://stratechery.com/2015/aggregation-theory
Kiwi News: https://news.kiwistand.com/stories/Aggregation-Theory?index=0x65b0e2aac0a295f7deb44a6999be38cd3942b319cd26f83103d7d152a9953a3c8b86eaa6
Submitted by macbudkowski.eth on 2024-01-24 UTC, 1 upvote, 1 comment

## Summary

Ben Thompson argues that Aggregation Theory, the thread running through his Stratechery posts, explains how Internet-era companies win: they digitize or commoditize the supplier side of a value chain and then own the user relationship at scale. The theory combines Clay Christensen's Conservation of Attractive Profits with the observation that the Internet has made digital distribution free and transaction costs zero. Google, Facebook, Amazon, Netflix, Snapchat, Uber and Airbnb are given as examples, with Uber and Airbnb cited as showing that even non-digital industries like taxis and hotels can be disrupted once a critical function is digitized.

## Comments

**tim**: It‘s a great post but a bit too much of a known oldie for me to upvote!