The company competing on cost plus is wasting resources by solving problems that arent very profitable to solve
replyEvery business still operating on that basis has a moat somewhere else.
replyYes this. Either have a moat or be a commodity. Commodities are cost plus
replyIn a market with perfect price discovery, sure. However, over the years I have learned that even the best products for the job can (and will) lose without the right marketing, sales, distribution, etc.
replySometimes the entrenched default that collects an inertial premium doesn't get disrupted...
But, yes, anyone without a moat who operates with a presumption of retention runs the risk of being knocked off of their perch; their fate left to others.
As is every individual earning more than median income.
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