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- Newsgroups: comp.os.os2.advocacy
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- From: bai@msiadmin.cit.cornell.edu (Dov Bai-MSI Visitor)
- Subject: Re: Is Microsoft the next Standard Oil?
- Message-ID: <1992Dec30.045831.28228@tc.cornell.edu>
- Sender: news@tc.cornell.edu
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- References: <1992Dec29.124550.10847@donau.et.tudelft.nl> <1992Dec29.194001.13392@noose.ecn.purdue.edu> <1992Dec29.222359.25528@donau.et.tudelft.nl>
- Date: Wed, 30 Dec 1992 04:58:31 GMT
- Lines: 32
-
- In article <1992Dec29.222359.25528@donau.et.tudelft.nl> linstee@dutecaj.et.tudelft.nl (Erik van Linstee) writes:
-
- >I just wanted to point out that that isn't true and that
- >there are other means of driving someone else out of business.
- >The large company could also decide to skip making profit for a while
- >until the competition died. The small company on the other hand can not
- >afford such a practice, so, even if they are equally efficient and
- >maybe even of equal quality, the small company would still die on
- >account of the others hugeness. (Note: this is no reference to any
- >existing or past situation whatsoever)
-
- Not so simple. Hughness is not necessarily an asset, it may be a
- liability as well, when it comes to compete with a small company.
-
- If a company has a monopoly, its sales volume is huge
- compared to the small company. If the monoply has to reduce prices
- because of a small company, it must do it on this whole huge volume
- of sales. This means a hugh loss. What it means is that if one or
- few small companies manage to make make few such "guerrila attacks",
- they may drive the monopolistic company out of business quite
- easily.
-
-
- >Erik
- >--
- >Erik van Linstee | Delft University of Technology | I'll be back ...
- >----
- > We are god, 'cause only we can create the idea of his existence
- > in our holy brains... (Yello)
-
- Dov
-
-