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While I agree that there's a lot of marketing speak here, I have to note that: 1) You wouldn't expect zero margin, you would expect normal margin, that is, the
by napoleon_thepig 5y ago
While I agree that there's a lot of marketing speak here, I have to note that:
1) You wouldn't expect zero margin, you would expect normal margin, that is, these companies should have around the same margin as the average of the rest of the economy.
2) Commodity markets don't have to be low margin, because a commodity market with high market concentration will be a high margin market.
- lotsofpulp 5y agoWhat does market concentration mean?
- meragrin_ 5y agoI pretty sure it refers to how the market share is spread between the competitors in a market. In a market with low concentration, you have say 20 competitors and no one has more than 10% of the market. When there is high market concentration, 3 of those 20 competitors might have 80% of the market.