No Planet for Old Businesses
On 16 June 2017, Amazon.com Inc. announced that it is acquiring Whole Foods Market Inc., for $13.7 billion in an all-cash transaction. (Garcia, 2017)
By the end of that day, Walmart, Kroger, Target & Costco had lost their market caps by 5.8%, 7.1%, 9.1% and 15.7% respectively.
On the eighth day of the announcement, Amazon's market cap had increased by $18.9 billion. (Galloway, 2017)
In a sense, not only did investors reward Amazon by funding the acquisition, they also punished the competitors of Whole Foods for not being acquired by Amazon.
The situation is such that as soon as Amazon enters any category, leaders in that category lose market valuations almost instantaneously. That is the promise/threat of platforms like Amazon.
Platforms are winning in today's zero-sum game of growth. The monopolistic Platforms are stealing our lunch.