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There were many car companies in the early 20th century. Most didn’t make it. Yet cars are an integral piece of our lives globally, so the market size only grew
by azinman2 5y ago
There were many car companies in the early 20th century. Most didn’t make it. Yet cars are an integral piece of our lives globally, so the market size only grew larger. Software is no different, except it’s infinitely flexible.
- colinmhayes 5y agoThere are some big differences between software and car companies though. Car companies required gigantic, continuing capital to manufacture their cars. Software has zero marginal cost. It seems that the difference in capital requirements once a company is up and running would allow the software industry to have more competitors.
- azinman2 5y agoYou’re assuming switching costs are the same, available labor is universal and endless, business dealings are the same, etc. It seems the most successful “competitors” are never head on for anyone entrenched, but rather come at similar problems from a different angel. Even companies who are up and running often want capital to take things to the next stage. None of that means burst of a bubble.