Adonis Diaries

Posts Tagged ‘incentives change

Capitalism vs. lock in

Free markets encourage organizations to take leaps, to improve products, to obsess about delighting customers.

One reason that this happens is that competition is always nipping at your heels… if you don’t get better, your clients will find someone who does.

But once lock-in occurs, the incentives change. (The State is almost always responsible for monopolistic trades, by selecting particular companies to do business with, at the exclusion of many worthy ones)

When the cost of switching gets high enough, the goals of the business (particularly if it is a public company) start to drift.

Google doesn’t need to make search more effective. They seek to make each search more profitable instead.

Apple doesn’t need to obsess about making their software more elegant. They work to make the platform more profitable now.

[For example, iMovie, which has destroyed all possible competitors because of lock-in pricing, but continues to badly disappoint most reviewers.]

Verizon doesn’t need to make its broadband faster or more reliable. Just more profitable. (Keeps acquiring more companies for monopolistic goals, encouraged by the NSA intelligence agencies)

In many ways, it’s more urgent than ever to engage in free market competitive thinking when you start a small business.

But as network effects increase, we’re getting worse at figuring out what to do about restoring free markets at the other end of the spectrum, at places where choices aren’t as free as they used to be.

We all benefit when organizations that believe they have lock-in act like they don’t.

(The question is: what incentives and how can we pressure these lock-in companies to revert to free market spirit?)

Do you want our apathy?

Don’t respond to emails.

Be defensive when I offer a suggestion when we meet.

Dumb down the products so they appeal to the lowest common denominator.

Treat me like I don’t matter more than anyone else.

Put me on hold.

Don’t miss me if I’m gone.

Maximize profit, not impact.

If you want me to be an apathetic bystander, it’s not that difficult to accomplish.

Whatever.


adonis49

adonis49

adonis49

September 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930  

Blog Stats

  • 1,416,527 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.adonisbouh@gmail.com

Join 768 other followers

%d bloggers like this: