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Basically, don't enter over saturated markets unless you offer something that makes you different. Google did it offering relevant results for search, Apple did

• anon808 12y ago
  Exactly. A company can have a monopoly on product quality, or manufacturing efficiency, not necessarily a monopoly on a vague, conventional definition of an industry. Another example is in-n-out burger. They don't have a monopoly on hamburgers, but they do have a monopoly on their kind of hamburger (high quality/freshness, low price at scale).
  • marknadal 12y ago
    You must not have had an In-N-Out burger, they hardly have high quality. I did a blind taste test study on 23 participants, between McDonalds meat and In-N-Out. There were no significant results - people were only able to identify the correct meat 53% of the time (and it was McDonald's, not In-N-Out's, indicating a slight preference towards McDonald's taste). Essentially, every time you ordered a burger, you could flip a coin and you wouldn't notice the difference in the meat. This was a small sample size, but I want to expand it with a more comprehensive study. Where most In-N-Out fans go wrong is that they compare a $1 McDonalds Cheeseburger that has no lettuce or tomatoes, etc. with a $4 In-N-Out burger that lots of garnish and Thousand Island Dressing. A more "accurate" comparison would be between one of McDonald's Quarter-Pounders, of similar price, and In-N-Out, but ultimately the dressing is going to cause the divide... not the "high quality/freshness" of the burger.