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I think there are many sectors where just one or two companies really dominate the industry. PayPal seems like one, especially for international payments. iPho
by memset 12y ago
I think there are many sectors where just one or two companies really dominate the industry.
PayPal seems like one, especially for international payments. iPhones and Androids. Windows. Cargill for food.
Granted, I am having trouble coming up with companies where "just one" company dominates the market, but overall this seems more common than one would like to think.
You are correct in that "it is difficult" would not be sufficient to explain why there are so few competitors. But I think I feel similarly about these other industries as well.
- raisedbyninjas 12y agoThis comparison with Luxotica breaks down for two reasons. First is when you consider that Paypal has network effects and iOS and Android are platforms. Pushing glasses frames has neither of these impediments for upstarts. The second is the ridiculous markup. If Paypal increased their transaction fee from 3% to 30%, a competitor would kill them. Cargill didn't bump food prices 10-fold even though bio-engineering is at least an order of magnitude more complex and costly than molded plastic in a pretty shape.