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Enterprise vendors have gotten better at locking in customers on multi-year contracts which takes away some of the biggest upside to chipping away at the market
by tmpz22 2y ago
Enterprise vendors have gotten better at locking in customers on multi-year contracts which takes away some of the biggest upside to chipping away at the market. Often a challenger will come in and snag a few smaller deals but the Monopoly has a plethora of options to swat it away - rev up their larger more experienced product team to compete, lobby for regulation, poach from the challenger, acquire the challenger, tank prices in the one area the challenger has traction, and much more.
- lainga 2y agoI read a particularly disgusting book called "Competitive Strategy" by Michael E. Porter, that plainly explains how and when to carry out each of the monopoly-preserving actions you have listed
- HeyLaughingBoy 2y agoFrom what (little) I know, Porter's generally considered to be the expert on Strategy. What did you find disgusting about the book?
- lainga 2y agoI guess we are coming from different worldviews. These were IIRC collectively referred to as "retaliation" by the incumbent firm and none of them sat very well with me as conducive to innovation. - lobby for regulation - poach from the challenger - tank prices in the one area the challenger has traction I believe Porter also mentioned trying to secure vendor lock-in.
- n4r9 2y agoNot familiar with Porter, but being an expert doesn't necessarily make you ethically untouchable. Warren Buffett for example is well known for investing in companies with aggressively anti-competitive behaviours.
- amne 2y agowait.. why is "rev up their larger more experienced product team to compete" bad?
- djbusby 2y agoIt's not "bad" it's just a factor to consider when planning market entry, like a start-up trying to get these dealers on their platform.