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Not necessarily. An extremely low profit margin is a sign of a commodities market, where there isn't really a space for innovation. For example a grocery store,
by gmadsen 6y ago
Not necessarily. An extremely low profit margin is a sign of a commodities market, where there isn't really a space for innovation. For example a grocery store, so you are competing on very fine details and logistics.
High margin, COULD be inefficiency, but it could just be a technological or innovation advantage.
It seems ride hailing is transitioning into a commodity since innovation has dried up. The one obvious disruption would be self driving cars
- pjmorris 6y agoWell, at one time, cash registers, packaged food, and stores were all technological innovations. I'm asking whether 'technological or innovation advantage' can be interpreted as a sign of temporary inefficiency that will eventually get ironed out of the system (unless maintained by force, as another commenter mentions.)
- gmadsen 6y agoI guess in a world without regulations or laws? The entire economy is predicated on patent and copyright law, as western civilization has deemed it beneficial to protect innovation and reward the innovator.