Traditional business value comes from some innovation, and a lot of execution/logistics delivering the innovation. Logistics for product companies being manufacturing, and sales/delivery.<p>But now most small product companies have outsourced production on the "input" side, and outsourced logistics on the "output" side.<p>Which leaves harsher more direct competition for their innovation core, since that is a fraction of the original business and more easily copied.<p>High componentization of any economy ratches up competitive pressure exponentially, whether it was Amazon, or a collection of service companies offloading the downstream logistics.<p>But since Amazon is protecting itself by doing the opposite, by de-componentizing, i.e. preferencing and tying different sales and delivery logistics services to each other, that centralized leverage is going to squeeze small product companies even more.<p>Especially those that don't have a unique manufacturing process, unique branding, or some other differentiating moat.