He talks about how ownership of production and distribution resources are becoming less important in our world and how trust and relationships are becoming more important.
(Jeff speaks in the context of media and Internet technology but I think the concept holds true in most industries.)
To simplify, I think he’s saying as our world continues to develop, most products and services become more commoditized (in that they have many providers). The point of difference is the people who provide the product or service.
The reason we choose to do business with someone is because we trust them, we like them, we believe they will do a good job for us.
It’s our relationship with them that matters most in our decision to do business with them. Not that this is earth-shattering news to any of us. One nice thing about being in a small business is that we usually understand this very well.
I find Jeff’s article interesting because it seems many large companies behave as if they do not yet understand this. So, to the extent we compete with large companies who are blind to this, we have an advantage.
Also, I find it a valuable reminder of the second most import thing about running any business. That is, you need to build trusting relationships with people who want what product or service you provide.