Episode 79: Free Zone Frontier

In this episode, Dan defines and illustrates his concept of the “free zone frontier.” By establishing a partnership between two well-positioned capabilities, one party--the designated “simplifier”--provides a new solution while its counterpart serves as a massive “multiplier.” Peter offers the example of Amazon’s open sourcing of its internal company software platforms, allowing competitors to use its services and, in turn, make them cheaper for Amazon. By purchasing Amazon fulfillment and customer service, for instance, firms gives Amazon far more data, improving their services while making them cheaper. Dan and Peter highlight numerous cases of entrepreneurs that provide value to clients without anything in return, and thereby validate the products of their business partners. This eventually leads to massive revenue streams and sustainable, trusted businesses.