Stratechery "Aggregation Theory" Images

Image Description

The image contrasts two eras: "Pre-Internet" and "Aggregated." On the left, "Pre-Internet" shows a vertical structure where integration equals value, with a focus on solving the hardest problem. On the right, "Aggregated" depicts a networked structure, emphasizing digitization and solving new hardest problems.

Positive Aspects

This image does a fantastic job of visually simplifying the concept of Aggregation Theory. By contrasting the pre-Internet and aggregated models, it clearly illustrates how the internet has transformed business structures. The straightforward diagrams make the theory accessible and tangible.

Key Takeaways

• Integration vs. Aggregation: Pre-Internet businesses valued integration, while internet-era businesses leverage aggregation.
• Problem Solving: The hardest problem shifts from integration to digitization and network management.
• Structural Change: The internet has redefined value creation from vertical to horizontal structures.

Additional Insights

Aggregation Theory is like the internet's magic wand, turning isolated towers into interconnected networks. Remember when video stores were a thing? Aggregation Theory explains why Netflix thrived while Blockbuster stumbled. It's all about making connections and solving new digital-age problems!