Markets Are No Longer Competitive: NYU's Scott Galloway | CNBC
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- เผยแพร่เมื่อ 16 ก.ย. 2024
- Scott Galloway, NYU Stern professor, and Roger McNamee, Elevation Partners co-founder, discusses the need for big tech to break up to create more innovation and opportunity in the market.
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Markets Are No Longer Competitive: NYU's Scott Galloway | CNBC
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If Professor Galloway is in a video, I watch.
VIOLETS BLOOOOOM! (thats our cheer right)
Went out and had beers with him years ago. Really interesting guy.
@@PerryCudawe don’t care
Scott is such a joy to listen to. Full of knowledge.
He is SPOT ON. We have antitrust laws for a reason. At least we used to have them.
We still do. We just don't enforce them.
Mostly because of bribery.
I mean lobbying.
The bar for violating the anti trust laws is very high. They're also outdated imo. They need to be updated.
FTC just filed a complaint against Excon alleging they engaged in price fixing with OPEC. The shale producers have been going through a boom in the Permian basin in Texas and the Midwest. They fixed prices with OPEC and throttled supply. It's estimated the scheme added 27% to the price of oil.
Just remember that the next time someone says workers wages are causing inflation, and greedy workers are bleeding poor companies dry. This price fixing scheme had huge negative impacts on US inflation from 2021-2023.
Terrific messaging: "oxygenating the marketplace". Love it.
Galloway chooses his words very intentionally.
Don’t watch CNBC, but I had to stop and listen to what Professor Scott Galloway had to say.
Then what do you watch MSNBC ?
galloway makes a boatload of sense. thanks for the sharing.
Im a simple guy, I see Scott Galloway and click and like. Love you scott
Wow...this was one of these profound videos with a very interesting and important analysis. Well done Scott!
3:20 when that guy asked that question I immediately thought of the movie idiocracy.
Great segment
I agree with Galloway on this, but I think he’s too focused on tech. There’s monopolies in almost every industry at this point. How about he banks?
What do you mean the banks? Each major country has its own major bank and dozens of minor with power. Name one bank that is available in all countries?
Not even close , maybe Visa as a payment platform but even they have competition. Facebook is unchecked . There is no MySpace anymore, there is no alternative to Facebook right now and it’s not good. Google is the same , Firefox and internet explorer/bing are jokes. Nobody can get out ahead of these companies right now . If you need googles services you need google . You have no reasonable alternative other than not using anything which is like the only cars being Chevy and if you don’t like em don’t buy em go ride a bike . It’s an option for a minority that these companies dangle out to tell the govt it’s all ok don’t worry .
Interconnection via the internet, makes these businesses anti-competitive by design. Facebook technology would be useless if instead of a monolithic service there were hundreds of individual mini-Facebooks, since not all of your friends would be on the same service. The same is true for Amazon-- you don't get one-stop-shopping and ease of hitting the free-shipping point if you have to go to dozens of independent sites to buy things, and the economies of scale allow for the lowest prices. Also true with eBay, since shopping at dozens of individual auction sites would be a lot more work and sellers wouldn't get as much exposure to buyers as they do with a monolithic service. Monopolization is built-in to the technology.
Would it be possible to design a decentralized "Facebook" around open protocol standards that would re-introduce competition into that market? Quite possibly, but not many are interested in doing it, and there is the critical-mass problem, that of getting enough people to start using it given Facebook already exists.
+Neurotic Knight Up until the late 1970s, the U.S. government had all sort of regulations on banks to prevent bank consolidation and similar acts. This included not allowing banks to be both investment and checking and did not allow for much bank buying at all. However deregulation through the early 1980s through towards the late 1990s has allowed for most local banks, at least in the U.S. to be few and far between. For example, there used to be a Wachovia near me, then Wells Fargo bought Wachovia and closed it. Citizen Bank, although always was a major bank is now owned by the Royal Bank of Scotland. These are not the best examples as there are others. For example, take a look at this example of a regional bank and notice when these buy ups occur www.usbanklocations.com/germantown-savings-bank-15758.shtml
Bitcoin
So true
Amazon is a taxpayer subsidized monopoly machine! AMZN leverages its capex (6% of sales) to inflate EXPENSE against all other revenue. Instead of paying taxes on profits, it grows with capex and zeros out income. SEC has let this go on for 20 years without pause. Great stuff!
A hundred millionaires does sound better than a couple billionaires
Another takeaway I'm getting from this is maybe entrepreneurs should think twice about selling their businesses to these larger entities.
They often aren't left with a choice
Scott Galloway for president 2020!
that’s right Amazon tanked our sales over night by 70% as they took on our competitor as a Vendor | No regard for the millions we had paid in fees Just horrible.
Scott is the man... straight up brilliant as always.
This video was two years ago but, I don’t think people are afraid of innovating because of big tech companies.. I think we give too much praise to tech companies that have too much power.. Anything that has too much power has potential to corrupt! But this power that they hold is because we praised them so highly in the past and currently.
Huge fan of Professor Galloway.
WoW!!! Kudos to CNBC for finally growing a pair and having a free market guy on. 😎
Fewer companies owning all the countries industries. Anyone paying attention should be very concerned about the monopolies being allowed and their choices of companies to work for shrinking.
They should at the very least stop providing Amazon with so many subsidies! Ridiculous!
Scott was clever in not using the overused term DeathStar Amazon, Instead going with all the other Star Wars Imperial quotations. Love it.
First econ prof to make sense in 30 years.
He’s got a point.
absolutely Scott! bravo break up Amazon NOW!
Scott is a smart man who clearly understands the nuances of long-term ecnomic trends. He's right. We don't want whatever crowning our first trillionaire is going to bring upon our economy.
If you want to help startups loosen government regulation, cost of compliance, occupational licenses, and all the other stuff that stifles small business.
How is this different compared to GM when people were scared of its dominance? It was not broken up, it fell from its dominance, and went bankrupt not that long ago. All of this happened in Scott's lifetime.
"Collectively to Crown the first Trillionarie" Scathing criticism on the Masses?
Wow this is so true it's scary.
It is like we are moving from Consumer Driven Markets to Markets driven solely by investors at the expense of customers.
No longer do customers chose their companies, instead big companies get to chose their customers.
We are moving from a Free Capitalism markets, to a state of Consumer Capitalism.
Some might even say it is too late, and we are already there.
Google has a monopoly on search, because the competitor products like Microsoft´s "Bing" or Apple "Maps" are terrible products. Incomprehensibly terrible products...
Doesn’t actually make it a monopoly by definition then as there are supplementary services, just not of comparable quality, which one cannot blame on google but on Microsoft’s, apples, opera’s and firefox’s. Google just has market power but they also simultaneously have produced value at surplus compared to competitors.
The real problem is deciding how you actually define a monopoly. The first guy to make a bike, did he havea monopoly on bike manufacturing? And yet im sure if you said only one guy was building cars youd said its a monopoly. But how big does an industry have to be before you can have a monopoly in it? What if i make the first building that can fly? thats just a novelty. But once all buildings can fly, and we just call them "buildings" cause its the norm now, if im the only one making them, then i have a monopoly right?
So at what point is an industry big enough that it can have a monopoly?
edit: there was a time when a search engine was just an idea some guy had in his head. Just this novel concept of an idea for a website. But someone made a site. Other guys made other searching sites. Eventually one becomes dominant. But at that time maybe some amount less than 50% of americans have used a computer. Is it a monopoly? well whenever cars were starting out i bet not many people had used them and there probably WAS a company that really had swallowed up a lot of the market share.
Funny thing...the algoritm they use, obviously improved in time, was developed by tax payer money.
Monopoly out of Viability.
Konstantin N
Bing is amazing, do your research. Bing also has 25% market share as opposed to Googles 60%, which is not a majority, but is very profitibale. On a technical level, Bing maps is actually more consistent (in my area), bing has a builtbin calculator just type "factor x^2+18x+64" it solves it. Bing pays you to search, literally. I could go on, but I don't care enough.
The comment about AT&T is an understatement, but our congressional representation has been too weak to do anything about it. These companies aren't too big to fail, but they are too powerful to be broken up. It's a scary new world out there.
Scott Galloway is a genius. No doubt.
When capitalism can’t stop capitalism 😂
And all these experts didn’t see this coming?
Galloway makes sense from a business perspective, but from a consumer standpoint which 99% of us are, if Amazon breaks up all consumers or customers will take a hit.
Pretty interesting
I really like the content and conduct of Scott Galloway in his own but he is dead wrong morally and economically about his recommendations and view.
Scott makes a great sidekick for Kara. I'm glad he stopped doing Star Wars references
Truth. Capitalism works but you need checks. We don't need socialism we need regulated markets with low barriers of entry.
megatron184 all regulations increase the entry barriers. The less there is regulation the less there are barriers.
Lauri Koskinen that's not even kind of true. You can regulate giant mergers or break up monopolies without any barriers of entry for the little guys.
megatron184 only regulation creates monopolies and mergers do not create any barriers of entry so it is true. It's just a mathematical fact that free market is the most efficient. The role of the government can have is to eliminate asymmetrical and/or disinformation which are the only causes for inefficiencies in free markets.
Lauri Koskinen dude no system is perfect. Read about America in the gilded age. Monopolies will eventually form in any market that requires a lot of capital to enter, especially without regulation. Just like Standard Oil. The fact is no system is 100% perfect. That's kind of the point of this video...
megatron184 Standard oil is a great example how regulation forms monopolies. Rockefeller used more money into bribing than developing oil refineries. The U.S. would have the world's best public transport and electric cars prominent if it wasn't for standard oil bribing law makers to ban fair competition. Although natural resources with long term environmental consequences are maybe something that free market has problems incentivising but the solution is free information, not governmental intervention.
Galloway isnt wrong but he's very narrow minded on the causes and who'se behind it. I truly believe the governments anti-business policies since the dot com boom giving tech companies an enviroment where they can become so powerful is more responsible for the situation were in than anything else.
yeah, in the meantime Tencent and BABA are salivating over acquiring one of those parts.... Btw, Roger, how is your Facebook stock today?
I like Amazon. They sell the same pet food cheaper so I can save money. Others can do this too and they will challenge Amazon.
I don't agree on protecting the market. Free competition
You can't treat social media as a break-up of a TV network. People are already tired of switching or creating new accounts. How will that work?
By design, not accident. At some point, enough people will stop believing in the 24-7 propaganda, and that is when the blood will start flowing in the streets. Companies like Amazon , Google, TH-cam, Facebook and Reddit are controlled by the US intelligence community.
You sir are exactly right..our political climate is pushing for brother to turn on sister and neighbor on neighbor..and it's not trump..it was Obama before him..
The corporations are so greedy the people who work there can't afford the products they make..
Unfortunately, the global and instant reach of the Internet allows branding to allow each internet niche to naturally be monopolized. It would take a lot of regulations to force internet based companies to be and remain split up for competition.
Its starting... The mood is shifting.
Amazon doesn't actually make products. It is just an online store
Anyone know any other way to buy (BUY) an e-book without going through Kindle/Amazon?
Just buy a book lol.
VJ Joe Lewis From where? I don't know any book stores by me. They all closed.
Oh; Where do you live; Whats your nearest zip code?
The AMZ healthcare story was pure vapor ware.
It’s funny cause every time I hear news of one company buying another I say to myself, “wow history repeats itself” monopolies are alive and no one seems to care
In the short term big companies like Amazon can win. Times are changing stores will have to sell better/cheaper items online to survive/compete.
Smaller companies need to think smarter invest strategies for online marketing. How hard would it be to make an online ad and ship items? People no longer want to wait in long lines.
Big Dawg is right. Time to break the big 4 up.
Scott is smarter than all those CNBC drones combined.
No. To the contrary, the market is way too competitive now because of these big players. The bar is much higher for smaller players.
First, he glosses over the wage compact. Then, he blames efficiency, and vouches for corporate welfare? Supporting welfare for the business owner over the workers makes capitalism so much more noble than socialism? These are the last desperate arguments of our dying system.
I THINK PEOPLE JUST NEED TO PAY ATENTION THERE IS ALWAYS AWAY FOR SOCALLED MIDDLE CLASS PEOPLE TO EXPAND. WE JUST NEED TO DO OUR RESEARCH. THIS IS THE BEST TIME IN HISTORY FOR US PAY ATTENTION TO TECH
AND GET IN AND CONTINUE TO RESEARCH. AND QUESTION EVERY THING IN MAIN STREAM MEDIA AND ALL AGENCYS , THAT TRY TO DISUADE U FROM TECH. LIKE SAYING ITS GOING TO TAKE OUR JOBS...
THINK FOR UR SELF.
AND REALIZE HOW MUCH POWER U HOLD IN SIDE. GIVE THANKS AND SO IT IS! NO FEAR, LOVE.
I agree with everything they are saying but wish Walmart was added to the list of companies doing this. Taking their monopolistic power and leveraging it against whole new sectors they were never apart of, decimating them as they slowly grow. Its the natural evolution of the beast which is capitalism but personally i think its worrying since this much consolidation is what signals the end of the competition like what these guys are saying. Basically we are at the end game.
Break em up
Crammer and Faber should each be strapped to a chair in a small room and forced to listen these guys 24/7!
why does Amazon have a 600 milion dollar contract with CIA for Cloud Storage
Jonathan Silva lol you know the answer
its through an amazon branch called AWS, they've slowly become the safest and cheapest provider for cloud storage and even built up gigantic server farms all over the world. look it up its fascinating
safer than sia.tech/ ?
Nobody talks about Berkshire Hathaway (laugh).
I dont know a thing about markets or investing for that matter, but this somehow made sense!!! Guess Amazon is really helping alot of people worldwide, reguardless if people think its a monopoly. Honestly federal reserve notes has no value backing it anyways so why not help the world become millionaires, we will all progress!!
Not all competition is equal. Competition just for the sake of competition, is not productive. That's called sport, like in football. Why reinvent the wheel? You don't need "competition" for that. Breaking up the "big guys" does not guarantee support for innovation. Seems more like you're trying to be the "big guy" by turning real problems into your own personal "sport" agenda. If you're bored, go watch a football game.
*Two years ago and they were talking about how they were too big.*
ships are no longer carrying our goods abroad that is pretty concrete evidence question 1
His argument is fundamentally flawed in several of the companies that he cites as case scenarios. Take Amazon for example, they have literally empowered hundreds of thousands of people to start their own online businesses. Yes, Amazon as a company is getting a larger market share but that is by increasing the number of entrepreneurs in their ecosystem. The same thing goes for TH-cam, look at how many people are making a living broadcasting and selling from their TH-cam channels. As for Facebook and Google search they profit by a highly effective Ad targeting system which in turn allows other businesses to sell their products more effectively. Many of these corporations profit by empowering others to become entrepreneurial.
OK, so they have empowered hundreds of thousands of people to start their own businesses. If Amazon corners just one category of its multiple options how does one *compete?*
It's a case of getting more competition going... Unless you agree with Amazon establishing its own market(?)
Don't you think that's the job of free market and government, not a private company.
So you are saying that without Google or Amazon people wouldnt use the internet for selling their products?
All those idiots that gain hundred of thousands of dollar coding Javascript and Ruby on Rails must be wasting their time.
Actually, yes, when it comes to small sellers. There are millions who wouldn't be selling if it wasn't for Amazon's system, it's fulfillment is incredible. Same goes for Ebay. Those two systems have created millions of business owners. If Amazon didn't allow small sellers, there is no way they could start their own web-sites and gain a following for 99% of them.
Obviously internet sales would exist on the whole, just would be extremely hard for small people to get started. Right now, you can get started with next to nothing.
BobLoblaw1978 do u know how amazon treats it’s small sellers? Do u know the percentage that they get off of every purchase a smaller seller does? In all honesty the only reason small sellers rely on Amazon is because of its fulfillment everything else is pretty horrid!
B I G D A D D Y G A L L O W A Y
I agree, free market capitalism is the best of a bad lot. That doesn't mean it's good, just that it's better than the others. It shouldn't be a sacred cow.
But it's been manipulated too much now..banks should have failed automakers should have failed..fed chairs should have been hung in the streets..they destroyed our country..and got to shrug thier way out of this mess..but now the housing markets collapse and in no times they have ballooned again..a 25000 house is now 95000 be a use a bank wrote a toxic mortgage .. Knowing the holder couldn't afford it..but now the market is shedding money like crazy..the companies are buying back to stabilize the price but it's trading at 60% over value..how can we have the greatest market ever and the largest national debt ever..
Competition get rid of the middle class, or capitalism get rid of middle class, but no one wants to say it.
I see what he's saying and I somewhat agree but if this is not done cautiously it could become a long term disaster for over all GDP growth.
This anti private property element of the American intelligentsia is tragic and appalling.
Yes.. like piketty said we are back to XIX century on economics... some big lords with enormous power
XIX century was one of industrialists, new money, not "lords".
I pray it’s not too late.
Break them up and watch Baidu and Ali Baba take their place
I don't think so. Have you tried using Alibaba or Ali Express? Compare those to Amazon, and you will see massive cultural differences. These are major barriers Alibaba would have to negotiate to be a viable challenger to Amazon. Baidu? Same again.
Nobody's talking about breaking them up, they're talking about eliminating the current path toward vertical integration. Traditionally, vertical integration has been judged anti-competitive. These companies have been doing it for the past 5 to 10 years. It's worth noting that vertical integration is not providing any income for them, nor user growth. Their efforts at vertical integration are designed to pave the way for future growth. So if their Core Business is already winning against Alibaba and Beidu, then even with constraint on future vertical integration, they will continue to succeed.
But muh free markets!
You can't..theses companies are too big they destroy thier competition..how can a bloated stock market be a sign of a good economy..
It's easier said than done. Breaking up Amazon or Facebook or any other big organization like that is not a joke.
vausa harder than breaking up standard oil?
Boring ....
Victor Seborowski yes esspicaly Facebook the whole point of Facebook is that other people use it so if it was broken up 1 of the companies would just become a new monopoly and the others would become bankrupt because of this the best thing we can do is have the piblic buy Facebook stock to try to control the company
We could start by ending FANG's tax holiday, level the playing field.
These companies are Titans compared to the oil companies we had in the past they are global publicly needed companies that have services that are needed and wanted by everyone. They have so much control and power over their market share that it'll be virtually impossible for them to be broken up. Unless the public sees this and wakes up to the fact that after a decade we won't see many companies providing us with services but just a few that'll milk us cause we won't have a choice.
Intellectual property allows for consolidation of the tech industry
He needs to read, Milton Friedman and Ayn Rand. Throw in some Thomas Sowell.
We know what Ayn Rand had to say ask Greenspan..do you want to see the next market crash and the Fed chairman say hmm that's not how it happened in the book..
William Finnegan to reinforce his beliefs?
Bottom line entrepreneurs need access to capital!
Scott, quit being lazy and allowing others to be lazy. If you think Amazon, or other companies, have too much power then stop (1) Advertising for them in your videos (2) Buying their product. No one is forcing anyone to buy from Amazon. It's all voluntary. So, if you want to mitigate their power and allow others to gain traction, then simply stop giving amazon your money and give it to some one else. It's not that hard!
When you have these corporations expand unchecked, you get a homogeneous culture. That's not a good culture to have for growth and innovation.
If anything, im glad amazon is becoming such a force. Their logisitics of delivery is unheard of and biggest distributors before amazon could not fathom to have 2 day shipping or amazons algorithm of how they work. No one can copy amazon because no one knows how to. From books to cloud services and retailer etc.
25% of all amazon's profits goes to one man.
He is the one that founded the company and took all the initial risk. Why shouldn't the profits go to him? By the way, profits are calculated AFTER wages for employees etc. Those are expenses. Please visit your library more often. Read a Schedule C. Understand basic concepts.
I agree Amazon is becoming worrying. But the statement that the man that founded the company gets 25% of profits is irrelevant.
Soon it will be like idiocracy the movie... 5 companies and we will be eating fluffy food that tastes just like the real thing. Choosy moms choose Jiff
I feel like amazon exploded because it exploits the inefficiencies of other markets so effectively that we couldn't imagine another system once you're enveloped in their newer Amazon ecosystem. Whole foods and Amazon go stores will likely be the most recent example, but I remember the age of online purchasing before Amazon sold everything and sold just books.
It's the data Amazon has that is so obtrusive. Same with Google. This allows them to target and undercut so many retailers with Amazon basics products. Go one step further and you see all these new retailers selling through the AMAZON marketing platform rather than making their own online store and in-house fulfillment centers. Now not only do you stifle the competition, you hide it in looking like you help newer businesses because they get to set up shop and sell easier on the Amazon platform while likely unknowingly feeding Amazon the marketing data they need to stomp them out later on when they see the value of the product vs that retailers business traffic.
Square space is where I see some saving grace for now. Anyone can get a domain and the structure for an online store within just a couple hours. That's innovation to me: taking a new product to market within HOURS. All you need it the stock. With places like indiegogo and Kickstarter with crowd funding you don't even need the product yet, just the premise of a product and you're started.
Look, in nature a predator only shows mercy when the prey benefits them somehow. Once the crocodile's teeth are picked clean, don't expect him to let you sit safe in his mouth for much longer.
It exploded because the government made it deals to produce quicker cheaper..and to do that took work out of America..at the tax payers expense..they pay no shipping to the post office while shipping everything through the mail..
There are a lots of entrepreneurs in amazon.
Not really, selling formAmazon is not even entrepreneurship, it's maybe akin to opening a franchise. This does not evolve products and the marketplace, as somebody who develops products for a living
Galloway has no idea what he's talking about. Crushing regulation, costs, overbearing government, and unions have caused low numbers of startups and wasting of the middle class.
Gee I wonder why competition has gone down... Oh wait ITS REGULATION!
Not all regulation of course
German Carranza 😐
Sometimes someone on here surprises me. Capitalism is awful in general. It's destroying countries and markets around the world.
We need less insight from academics and more from businesses in tough markets. Amazon has a great business model.
markets = sharks.
mar kets = sea cat
Capitalism is beautiful!!
Buy crypto, plenty competition there.
And then when it tanks we will all go "HOW DID THIS HAPPEN". No matter how big crypto gets, no one will ever bring it mainstream because it's literally unstable currency that does not have any physical space in the real world.
Hey I don't blame you for being skeptical. Many didn't ever think the Internet would become mainstream. They though it was a fad that would pass by. We know what the end result is. Lets check back in 10-15 years and see how it plays out. I personally believe Crypto is here to stay. Not all projects will survive, but i believe the ones that do will play a big part in the future economy.
Crypto is so much bigger than you are thinking. Many people are looking at it as if it were Disney dollars or Chuck-e-Cheese tokens, which is understandable considering how the media covers the space. It's like looking at the Internet as if it were just for email. Supply chains, property rights, accounting, medical records, personal finance, insurance, venture capital, fundraising, gambling, contracting and so many other fields are going to see disruption due to crypto platforms. I've been a programmer for 22 years and haven't seen a technology that felt so transformational since the arrival of practical mainstream Internet.
stuff
you probably mean speculation
how is breaking up these companies going to improve the middle class? That doesn't make sense to me. I wouldn't put the demise of the middle class at the feet of Google, Amazon or facebook. It's impressive to hear the same people who argue for Tech companies being too big never use that argument for the big banks, health insurers or other huge consolidated market sectors.
I've read Scott Galloway's book - wasn't impressed. I don't think either gentlemen has a good grasp on these businesses and they are, instead, just trying to win a PR battle.
HypothesisI liar
So you think Amazon is losing money all these years, on purpose, with good intentions?
And you presume the share holders don't like money?