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Google's cash cow product is knowledge of people's behaviors. Can equivalent product be built for much less, or be much easier to use? MS seems eager to build
by vibrolax 10y ago
Google's cash cow product is knowledge of people's behaviors. Can equivalent product be built for much less, or be much easier to use? MS seems eager to build a similar business. Amazon store seems built to survive at a near zero margin. Maybe AWS as well.
I think Amazon's ultimate success is predicated on eventually developing a higher margin business.
It seems many previous businesses founded on the low cost producer strategy, e.g. Dell, uses it as a means to get scale, then emphasise higher margin products and services.