Changes which come with changing market scale

Other times the scale or dynamics of a market shift enough to make a product no longer work despite having been a great fit. Companies are often caught flat-footed by these situations because what they have done successfully for years suddenly starts to falter—and they aren’t sure why. Ebay is a good example of this. Their decentralized auction model was very good in a nascent internet economy when there was a scarcity of items being sold online. Once ecommerce became commonplace, price and speed became much more important factors and Ebay’s decentralized model was at a disadvantage. Amazon was much better at building economies of scale in this post-liquidity ecosystem.