# Ben Thompson - Aggregation Theory (Highlights)  ## Metadata **Review**:: [readwise.io](https://readwise.io/bookreview/25845071) **Source**:: #from/readwise **Zettel**:: #zettel/fleeting **Status**:: #x **Authors**:: [[Ben Thompson]] **Full Title**:: Aggregation Theory **Category**:: #articles #readwise/articles **Category Icon**:: 📰 **URL**:: [stratechery.com](https://stratechery.com/2015/aggregation-theory/) **Host**:: [[stratechery.com]] **Highlighted**:: [[2023-03-29]] **Created**:: [[2023-04-04]] ## Highlights - The value chain for any given consumer market is divided into three parts: suppliers, distributors, and consumers/users. The best way to make outsize profits in any of these markets is to either gain a horizontal monopoly in one of the three parts or to integrate two of the parts such that you have a competitive advantage in delivering a vertical solution. ([View Highlight](https://read.readwise.io/read/01gwppfenyrm8774pkysg7zgfs)) ^499754503 - The fundamental disruption of the Internet has been to turn this dynamic on its head. First, the Internet has made distribution (of digital goods) free, neutralizing the advantage that pre-Internet distributors leveraged to integrate with suppliers. Secondly, the Internet has made transaction costs zero, making it viable for a distributor to integrate forward with end users/consumers at scale. ([View Highlight](https://read.readwise.io/read/01gwppjnw1p2jv9j7752eft7qp)) ^499754896 - Instead, suppliers can be commoditized leaving consumers/users as a first order priority. ([View Highlight](https://read.readwise.io/read/01gwppmgdag3k0p6jyky2ea6de)) ^499755294