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> It’s time for them to get creative and adjust their business models to become relevant again You’re assuming that at present small businesses can do this, or, at least will be able to make this transition before companies like Amazon have crowded them out of the space they operate in. I don’t think current evidence suggests that’s likely. By analogy, small businesses right now are a bit like ants, and Amazon a child with a magnifying glass. The child and ants are categorically different, and the ants that the child chooses to melt can’t “get creative” or “adjust their model” from being the prey of a quasi-predator: they merely die, the threat is too powerful and their biology too slow to let them escape. There is such a mismatch in scale between the ants and child that even though both could, in vague terms be described as “living creatures”, and even although the ants, at their most powerful, can sting, the vast majority are merely at the child’s mercy, with the other ants only being safe by nature of being hidden. What’s key is we’re not really seeing new small business competitors emerging who, were your model correct, should be “getting creative” and then successfully taking on Amazon locally, BUT INSTEAD we’re seeing what we expect in the unbalanced ant scenario, almost all companies and lines of business Amazon targets being taken over by them or destroyed. Based on this, I’m inclined to believe the view you have is flawed. Not only is there not a level playing field in which getting creative would be meaningful, there isn’t even room to actually compete, were you creative, unless you’re the child’s size. And even if you’re his size, the child is a vicious fighter. |