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Distribution Is King (Maker)

Slack was the no. 1 Workspace Collaboration Tools - until Microsoft Teams came along. Within a matter of 2 years, Teams had overtaken Slack in Number of Users. They did so because they could bundle it with Office 365 - Distribution for them was free.

boAt built a digital first electronics brand - but the initial distribution of the brand itself (not the products) was through e-commerce marketplaces. They leveraged pre-existing distribution to grow quickly.

PayTM built distribution first. On the basis of the wallet they got to millions of users. When UPI came along to disrupt wallets, PayTM could leverage the distribution to create many other business verticals.

Swiggy is a king maker for all Food Brands. Jio is a king maker for all internet businesses. Amazon is a king maker for all retail. Each of these is now killing those who leverage their distribution. Swiggy with its Cloud Kitchens, Jio with its Jio Apps, and Amazon with AmazonBasics.

Two Hypotheses here for me.

1. Hack and Leverage existing distribution channels to scale your business. Great distribution is key to survival.

2. Build your own Distribution as soon as you have the scale and the money. Relying on the distributors too long can dilute your brand and add to theirs.

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