Difference between revisions of "Winner-Takes-All"

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(Created page with "In a winner-takes-all market, the strong get stronger and the weak get weaker. Many high tech envirobments host three kinds of players: * A gorilla (market leader, often more...")
 
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In a winner-takes-all market, the strong get stronger and the weak get weaker. Many high tech envirobments host three kinds of players:
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Winner-Takes-All
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* A gorilla (market leader, often more than 50% reaping 70% of the industries profits)
 
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* A few chimpansees (seconds in command)
 
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* Numerous monkeys
 
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A winner-takes-all market have the following characteristics:
 
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* High initial development costs
 
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* Long habituation period for a customer (high [[Switching costs|Switching costs]])
 
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* [[Network effects|Network effects]] make a product or service more useful as the user community grows.
 
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A market goal of 10% in a winner-takes-all market can be dangerous: if the company does not win a substantial piece it risks loosing everything.
 
 
[[Category:marketing]]
 
[[Category:marketing]]
  

Revision as of 19:16, 27 August 2020

Winner-Takes-All

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