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Not quite the context. If you take the US market as a new tech company, particularly if you do so expeditiously, you can use that huge market as a springboard t
by adventured 5y ago
Not quite the context. If you take the US market as a new tech company, particularly if you do so expeditiously, you can use that huge market as a springboard to take the world market in many cases (that giant lucrative foundational market subsidizes any losses you need to absorb to go after the hyper fractured world market). Capturing the US market turns it into a resource pool to feed your global growth and makes it very hard to compete with you (you need a comparable resource base to stay in the fight if you're outside the US, which is very hard to put together).
US tech companies tend to have nice profit margins by their very nature, with or without a monopoly (Oracle and AMD have no monopoly and have really good margins). The ones with a monopoly of course tend to have even better margins. Software and ad serving (Google, Facebook, Microsoft, Amazon AWS & ads) are hyper margin businesses generally though.
The companies that built monopolies didn't throw a switch that suddenly made them far more profitable by abusing the market. Microsoft, Google, Facebook, Cisco, Intel, AWS, Nvidia all had good margins before they were giants. Fat margins go hand in hand with the software business, if you're operating your business correctly. It's more hit or miss in hardware, but the leading companies there also tend to have good margins.
US tech companies being able to take their product and extend globally, is the cherry on top, it makes their business that much better, that much richer. You can do the exact same thing from other countries, Shopify and Spotify are both examples of being outside of the US and using the homogenous US market as a key springboard to build a large global business.