4 ms·

I don’t understand what you mean.

• AnIdiotOnTheNet 5y ago
  Supposedly the advantages of free market capitalism are that it increases efficiency and makes for better products, primarily through competitive pressure. Yet here is a case where a company is actively stifling its own product in order to ensure its more profitable product isn't threatened.
  • ta89489544 5y ago
    My understanding from the OPs comment was that IBMs failure to cannabalize it's AS/400 market led to the failure of it's PC business. IBM chose to stifle it's own product to keep a more profitable product alive and as a result IBM's PC business failed. That sounds like exactly how things should work in ideal free market capitalism. The idea isn't that every business will choose to make better products to deal with competitive pressure, but that those who don't will die.
    • AnIdiotOnTheNet 5y ago
      Parent also said: > To be explicit, making the bet to cannibalize your own market is one of the toughest any company can make. High risk, high reward. In other words, it is considered a viable strategy, although also a risky one. The fact that it didn't pan out in this instance doesn't change that.