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They provide the service at a lower price and would be profitable if they weren’t aggressively expanding? That’s just a better company.
by burrows 6y ago
They provide the service at a lower price and would be profitable if they weren’t aggressively expanding?
That’s just a better company.
- mrkurt 6y agoI’m not sure why you’re fixated on price. Most interesting companies aren’t building commodities like toothpaste. Companies that have enough market power to crush smaller competitors tend to also drive the quality of products down. I’d prefer more high quality products to fewer “better companies”.
- burrows 6y ago> I’m not sure why you’re fixated on price. I’m responding to OP. >> there is so much vc money sloshing about that one is constantly fighting competitors who operate at a loss to try to build monopolies He’s claiming that VC companies use their warchest to undercut and ultimately force out incumbents. > Most interesting companies aren’t building commodities like toothpaste. Why is price less relative for “non-commodity” companies? > Companies that have enough market power to crush smaller competitors tend to also drive the quality of products down. Maybe? Peter Thiel talks about small margins in competitive industries leading to lower quality products because companies lack sufficient resources to innovate. eg, Google’s advertising domination lets them build high quality products like GMaps and GMail.