Surviving the Ecommerce Industry – Porter style

What is the connection between Michael Porter and ecommerce? 

If you're into ecommerce, you might also be into an article discussing the changes happening in the ecommerce industry and how companies are facing significant strategic changes 😬

CEO Toke Lund partnered up with Carsten Pingel, who's VP of Strategy & Commercial Excellence at Valtech. 

Together they've explored how growth rates have gone down in most ecommerce verticals leading to increased competition, cut-throat price competition, and dynamic pricing algorithms. Marketplaces like Amazon and Alibaba are winning the game of cost competition due to their superior scale and cash, while brands are winning the differentiation play in the Michael Porter framework.

This leaves omnichannel retailers and pure players stuck in the middle, facing financial struggles with massive stock volumes required to keep long tail assortment and placed in a margin game that just doesn’t add up to being a profitable business.

Read the full article here 👉 Ecommerce: The end of an era and start of a new one | Valtech