Second, big companies, although they have the option to use the new technology, shun it. They tend to do this for several apparently very good reasons. One is that big companies’ customers usually say that they are not interested in the new technology and its cheaper products because their performance is inadequate for their needs. Another is that “it is very difficult for a company whose cost structure is tailored to compete in high-end markets to be profitable in low-end markets as well” — established companies are used to operating with high overheads. Finally, “small markets don’t solve
...more
