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- From: linstee@dutecaj.et.tudelft.nl (Erik van Linstee)
- Newsgroups: comp.os.os2.advocacy
- Subject: Re: Is Microsoft the next Standard Oil?
- Message-ID: <1992Dec30.104840.15896@donau.et.tudelft.nl>
- Date: 30 Dec 92 10:48:40 GMT
- References: <1992Dec29.124550.10847@donau.et.tudelft.nl> <1992Dec29.194001.13392@noose.ecn.purdue.edu> <1992Dec29.222359.25528@donau.et.tudelft.nl> <1992Dec30.045831.28228@tc.cornell.edu>
- Sender: news@donau.et.tudelft.nl (UseNet News System)
- Organization: Delft University of Technology, Dept. of Electrical Engineering
- Lines: 35
- Nntp-Posting-Host: dutecaj.et.tudelft.nl
-
- bai@msiadmin.cit.cornell.edu (Dov Bai-MSI Visitor) writes:
-
- >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.
-
- Certainly, look at IBM for example.
-
- >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
-