Why Winner-Takes-All Thinking Doesn’t Apply to Silicon Valley
MAY 4, 2016
Given that news, it seems that businesses that have dominated their markets are learning that the magic elixir of network effects and winner-takes-all advantages are about as reliable as cures for baldness. In turn, the first mover experiences explosive growth and assumes a dominant market position while earning wonderful profits. And even if it did make that bet, the winner-takes-all business could credibly threaten to drop its prices at the first sight of competition.