joi, 7 mai 2015

Seth's Blog : Capitalism vs. lock in

Capitalism vs. lock in

Free markets encourage organizations to take leaps, to improve products, to obsess about delighting customers. One reason that this happens is that competition is always nipping at your heels... if you don't get better, your clients will find someone who does.

But once lock-in occurs, the incentives change. When the cost of switching gets high enough, the goals of the business (particularly if it is a public company) start to drift.

Google doesn't need to make search more effective. They seek to make each search more profitable instead.

Apple doesn't need to obsess about making their software more elegant. They work to make the platform more profitable now.

[For example, iMovie, which has destroyed all possible competitors because of lock-in pricing, but continues to badly disappoint most reviewers.]

Verizon doesn't need to make its broadband faster or more reliable. Just more profitable.

In many ways, it's more urgent than ever to engage in free market competitive thinking when you start a small business. But as network effects increase, we're getting worse at figuring out what to do about restoring free markets at the other end of the spectrum, at places where choices aren't as free as they used to be.

We all benefit when organizations that believe they have lock-in act like they don't.

       

More Recent Articles

[You're getting this note because you subscribed to Seth Godin's blog.]

Don't want to get this email anymore? Click the link below to unsubscribe.



Email subscriptions powered by FeedBlitz, LLC, 365 Boston Post Rd, Suite 123, Sudbury, MA 01776, USA.

All the latest news from people you know

Extra, extra! Read all about everybody's latest likes, Pins and follows
Pinterest
 
Get the app!
Android · iOS
 
Mobile App
 
Discover all the latest finds
 
Vintage Design pinned 5 Pins
The Bojon Gourmet: Cherry Marzipan Scones
Pin it
blulilly:(via 15 Living Room Decorations with Spring Flower – Small ...
Pin it
 
Other Pins they found
 
 
Vintage Design pinned 10 Pins
Spring bridal session ⎪ Antonova Kseniya Photography ⎪ see more on: http ...
Pin it
Lemon Almond Tea Cakes - tea bite cakes with fresh lemon ...
Pin it
 
Other Pins they found
 
 
Vintage Design pinned 18 Pins
I LOVE me some basil! Check out this easy Basil ...
Pin it
I'm loving the high waisted bikinis! ALL my stretch ...
Pin it
 
Other Pins they found
 
 
Vintage Design likes 1 Pin
Colorful winter bridal shower: http://www.stylemepretty.com/canada-weddings/ontario ...
Pin it
 
 
Peggy Bray pinned 14 Pins
"it is impossible to build one's own happiness on ...
Pin it
Craftsman kitchen cabinets - CrownPoint Cabinetry...love the craftsman feel, just ...
Pin it
 
Other Pins they found