Elves to Disintermediate Santa in shocking vertical integration move

For the last decade I have been involved in start-ups that tried to disrupt an existing ecosystem. As a result, I can smell a vertical integration play from a mile away. I am here to report on a shocking development on the North Pole.

For thousands of years, Elves were content running the production department for Santa’s operations. Now they incubated a new business unit called “Elf on the Shelf”.

As illustrated in the diagram below, these Elves infiltrate children’s homes, obtain their wish lists, and then pass them along to Santa. While this arrangement might have seem convenient to Santa at first, its spells trouble for the future. With wish list procurement and performance evaluation (naughty/nice) now in the Elves’ hands, who knows what is next.

One person close to the situation suggested they might cut Santa out of the mix, and go directly from wish list ingestion to production. The only thing Santa would be left with is delivery. Both Santa and the Elves declined to comment for this story, but inside sources confirmed early talks between Elves and FedEx’s new drone division.Screen Shot 2014-12-08 at 9.32.02 AM

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