Part 9/11:
One of the compelling arguments for the enduring power of middlemen is their ability to collect and leverage data. Companies positioned within the supply chain can access valuable information—from consumer preferences to supply demand—enabling them to optimize their operations. As a result, even businesses with similar production capabilities find themselves at a disadvantage when competing with larger players like Amazon and Walmart, who can harness these insights to dominate the market.
Moreover, middlemen wield considerable lobbying power, shaping regulations that affect their operations more successfully than traditional businesses can manage. Their quiet influence can lead to a market environment where they remain entrenched and beneficial, even as smaller competitors fail to thrive.