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Would a healthy market necessarily lead to incrementally ratcheted price/quality points? Seems like the barbell distribution has advantages (simplicity, plus re
by edmundsauto 6y ago
Would a healthy market necessarily lead to incrementally ratcheted price/quality points? Seems like the barbell distribution has advantages (simplicity, plus reflecting the decline of the middle class that buys “somewhat nice” items).
- clairity 6y agothat's a matter of definition i guess, but i'd say mostly yes, as a few competitors will go for a cost strategy, while others will differentiate. a decent (but not perfect) example is the laptop market. you have lenovo, hp, dell, acer, msi, asus, etc. mostly pursuing a cost strategy, with some differentiation efforts at the tops of their product lines, while apple (and perhaps razer) pursues a differentiation strategy. then you have a bunch of no-name companies also competing on price. you can buy a laptop for as little as a hundred bucks, all the way up to $5000 (and more).