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Old 07-12-2016, 04:28 PM
Machine Elf Machine Elf is offline
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Join Date: Feb 2007
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Quote:
Originally Posted by Vicsage View Post
I hope you're right, but money talks and there's no long term profit in making a product that lasts a very long time. You hook them on your product to drop the other products, then once you've got them, make the switch to an inferior product.
And then your company withers when a competitor arises and offers the long-lived product that your company refused to produce. Witness the demise of the Phoebus Cartel.

Hopefully some business/economics experts will chime in, but I assume that an arrangement like the Phoebus Cartel would be illegal under modern competition laws. Not to say it wouldn't happen, but participants in a covert scheme that stifles free-market competition would be risking jail time, as these guys found out.

LED lighting is an example of disruptive innovation. If there's not enough money to be made in selling long-lived light bulbs, then the answer is that some of the manufacturers will die, and the remaining few will gain market share; the trend will continue until the total sales for each of the remaining manufacturers is enough to sustain them.

Last edited by Machine Elf; 07-12-2016 at 04:28 PM.