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There is typically a cost leader and a quality leader in most markets - e.g. android and apple, Blue Bunny and Haagen Daas, kia and mercedes (respectively). Co
by bduerst 11y ago
There is typically a cost leader and a quality leader in most markets - e.g. android and apple, Blue Bunny and Haagen Daas, kia and mercedes (respectively).
Companies that target the cost-leader position will have thin margins but make up for it in quantity. Google didn't lose anything in the Android victory over the mobile OS market, and falls in line with their strategy of making slim returns on every user (which adds up).
- coliveira 11y agoThat makes sense if you're focused on being the cost leader in that segment, such as Kia or Walmart. But Google has no long term desire to be in a market unless it is advertising. I think they will be in a bad situation when cost pressures mount over the next years.
- bduerst 11y ago>But Google has no long term desire to be in a market unless it is advertising. Which doesn't change that they're the cost leader of the market and didn't lose anything. Where do you think the thin margins per user comes from? And the company is starting to diversify away from advertising with Cloud, Play, Express, etc.