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> People buy cars rarely. Ferrari doesn't sell many cars. Ferrari has product market fit. Not by the formal definition of having strong demand. The demand for

> People buy cars rarely. Ferrari doesn't sell many cars. Ferrari has product market fit. Not by the formal definition of having strong demand. The demand for Ferraris is weak, but the equally restricted supply allows Ferrari profitability anyway. The demand for food is exceptionally strong, but the vast supply makes profitability very difficult. > Product market fit is one thing. Market size is another. Frequency of purchase is another. Competitive advantage is another. They are separate things, but all come together to make up what we call demand. Product market fit hinges on demand, not those variables alone.

danielmarkbruce 5y ago
I'm not sure what "formal definition of demand" you referring to. In microeconomics demand is modeled as a curve and the statement "demand is weak" doesn't mean anything. Other than that, the word "demand" is used very informally. The microeconomics definition would state that the "quantity demanded" at price X is Y. Again, "weak" doesn't mean anything in that field. Nope, they don't all come together to make up "demand", and there is no "we" because your definition isn't what's used by the business or economics community. Those things come together to decide the size and profitability of a business. Demand is just one part. Competitive positioning is almost strictly a supply side issue. For example, there is more demand for corn than there is for coca cola, yet Coke makes a fortune and corn farmers do not. Coke has built a brand and large distribution channels - both which have large fixed cost components and hence require enormous scale. The result is a small number of soda suppliers and only 2 cola suppliers in most markets. Supply side issue.
- randomdata 5y ago
  > I'm not sure what "formal definition of demand" you referring to. Me neither since I didn't. > In microeconomics... I can find no evidence that product-market fit came out of microeconomics, so I am not entirely clear on the relevance of that. Context is relevant. This seems like us having a conversation about how a pointer on a computer (you know, the arrow thing) interacts with a UI with someone chiming in to say, "In computer science a pointer stores a location in memory." > Again, "weak" doesn't mean anything in that field. I'm inclined to agree within the new context you have provided, but that does not mean "weak demand" is without meaning. In fact, it is a term used relatively frequently, including in respected publications.
  - danielmarkbruce 5y ago
    > Me neither since I didn't "Not by the formal definition of having strong demand" - didn't you say that? I see it there, under your name.
    - randomdata 5y ago
      I did say that. The definition of product-market fit is indeed "having strong demand". I am not sure how that relates to a formal definition of demand?
      - danielmarkbruce 5y ago
        Ok, I see what you are saying now. We were just speaking past each other. I thought you were saying there is a formal definition of strong demand. Ie, there is a formal definition of demand, and a definition of "strong" in that context and thus a formal definition of strong demand. What you were saying is the definition of product market fit is having strong demand.

danielmarkbruce 5y ago

I'm not sure what "formal definition of demand" you referring to. In microeconomics demand is modeled as a curve and the statement "demand is weak" doesn't mean anything. Other than that, the word "demand" is used very informally. The microeconomics definition would state that the "quantity demanded" at price X is Y. Again, "weak" doesn't mean anything in that field. Nope, they don't all come together to make up "demand", and there is no "we" because your definition isn't what's used by the business or economics community. Those things come together to decide the size and profitability of a business. Demand is just one part. Competitive positioning is almost strictly a supply side issue. For example, there is more demand for corn than there is for coca cola, yet Coke makes a fortune and corn farmers do not. Coke has built a brand and large distribution channels - both which have large fixed cost components and hence require enormous scale. The result is a small number of soda suppliers and only 2 cola suppliers in most markets. Supply side issue.

randomdata 5y ago
> I'm not sure what "formal definition of demand" you referring to. Me neither since I didn't. > In microeconomics... I can find no evidence that product-market fit came out of microeconomics, so I am not entirely clear on the relevance of that. Context is relevant. This seems like us having a conversation about how a pointer on a computer (you know, the arrow thing) interacts with a UI with someone chiming in to say, "In computer science a pointer stores a location in memory." > Again, "weak" doesn't mean anything in that field. I'm inclined to agree within the new context you have provided, but that does not mean "weak demand" is without meaning. In fact, it is a term used relatively frequently, including in respected publications.
- danielmarkbruce 5y ago
  > Me neither since I didn't "Not by the formal definition of having strong demand" - didn't you say that? I see it there, under your name.
  - randomdata 5y ago
    I did say that. The definition of product-market fit is indeed "having strong demand". I am not sure how that relates to a formal definition of demand?
    - danielmarkbruce 5y ago
      Ok, I see what you are saying now. We were just speaking past each other. I thought you were saying there is a formal definition of strong demand. Ie, there is a formal definition of demand, and a definition of "strong" in that context and thus a formal definition of strong demand. What you were saying is the definition of product market fit is having strong demand.