Book Review : Modern Monopolies

The Book ‘ Modern Monopolies’ is written by Alex Moazed and Nicholas Johnson who are entrepreneurs and consultants.

The Book is about ‘platforms’ like Google, Amazon etc which are taking over the world.

It contains interesting case studies about Nokia, RIM etc and how these powerful companies collapsed in front of the onslaught of platform cos.

In today’s world , a product ( such as a smartphone) or a software is a commodity. What is valuable are networks – networks of users, transactions or data.

The beautiful thing about platforms is that as networks increase, their utility increases, their marginal cost goes down and they become even more profitable.

Hence it is no surpise that investors love platforms. It is estimated that by 2040, 50% of the S&P 500’s net income will come from platforms.

In India, unfortunately there are hardly any listed companies that are platforms .

I would recommend this book as a good beginners guide to platforms.

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