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this post was submitted on 26 Nov 2023
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Asklemmy
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quite a few of them are “natural monopolies”. for those unaware (source):
ie, cable companies, electricity suppliers, amazon. it’s really complicated and really expensive to build the infrastructure needed to meaningfully compete in those industries.
another relevant concept is the “network effect”, defined as (source):
this kind of thing is more applicable to things like social media companies (they’re more appealing the more users they have). this makes it hard to compete with social media companies because convincing people to use your new app is really hard if the usefulness of it depends on everyone’s friends already being on it. (this is also part of the reason twitter is taking so painfully long to die)
both concepts illustrate the different barriers to entry that exist when trying to compete with these giant companies. these barriers are also what allow these huge companies to get so complacent.
(i’m not happy about quoting investopedia or wharton, but they do give simple definitions of both concepts so i did it just this once.)