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 than 50% reaping 70% of the industries profits)
* A few chimpansees (seconds in command)
* Numerous monkeys
A winner-takes-all market have the following characteristics:
* High initial development costs
* Long habituation period for a customer (high [[Switching costs]])
* [[Network effects]] make a product or service more useful as the user community grows.
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.
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marketing_public
created
Sat, 08 Jan 2011 12:54:42 GMT
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dirkjan
modified
Sat, 08 Jan 2011 12:54:42 GMT
modifier
dirkjan
tags
M11
M11-S1 - Reading - Marketing Strategy and Organization - Chapter 5 - A Concept of the future
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creator
dirkjan