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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: axial who wrote (14727)4/22/2006 9:32:01 AM
From: ftth  Read Replies (1) of 46821
 
Hi Jim, you forgot #3.D.: screw 'em and leave it as-is.

Competitive pressures are marginal enough that "leave it as-is for as long as possible" is not only an option, it is the prevalent choice. That's a real problem.

As long as none of the competitiors "rocks the boat" in a quest for competitive advantage (which is unlikely when there are no pesky new entrants, and high barriers to entry), competition exists in a cozy state of lameness. It's "teflon competition." Every external force you throw at it bounces off.

Customer dissatisfaction on any of a number of fronts doesn't really influence the market, because it's equally-low across the board.
New technologies, and suppliers thereof, don't really influence the market in a free-flowing way either, because their adoption is in the provider's hands, not the customers or the suppliers.
Combine that with high switching costs and no real assurance that a switch to a competitor will even result in something better, and you have a really broken and ineffective marketplace...unless you are one of the providers.
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