Your margin is my opportunity

I am sure you heard this famous quote from Jeff Bezos. What is actionable from this insight?

1. Look at segments that have a wide spread mediocre offerings , that have not evolved much.
2. Look at segments that do not have wider choice for customers. Customers need to choose between 2/3 options and even those are not really options. Remember the limited options might have come about from a string of acquisitions or the segment attribute itself.
3. Look at segments whose players’ margins do not come down even when new entrants come in. Why does this happen? Either the new entrants are not radical enough or do not attack the fundamentals
4. Look at segments which have a number of intermediaries and each takes a cut in the value chain . Also look at value each intermediary adds in the value chain.
5. Look at markets that have traditionally been low on innovation.

These segments will inevitably be attacked from unknown quarters,sooner than you think!