Month: July 2009

  • The rise and fall of Monopolies.

    image1840457558.jpgI picked the following up from MacDailyNews and thought it was a great call on capitalism taking care of it's own if the government leaves well enough alone.

    With Microsoft net income dropping by nearly 1/3rd(29%) this quarter is that not a call for Obama to bail them out, or too just let nature take it's course.

    In a capitalist socity it might take 10+ years for Apple to achive dominence, or Microsoft could start making products that don't suck, or some other upstart(It could be you, this is America after all, no dream is too big.) could take the world by storm. Either way the people win. If the government takes over the computer industry we would be stuck with 90's tech for a centry and probaby all be speaking Chinese long before that.

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    Excerpts from a BusinessWeek interview with Apple CEO Steve Jobs, October 12, 2004:

    Steve Jobs: Apple had a monopoly on the graphical user interface for almost 10 years. That's a long time. And how are monopolies lost? Think about it. Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren't the ones that drive the company forward anymore. It's the marketing guys or the ones who expand the business into Latin America or whatever. Because what's the point of focusing on making the product even better when the only company you can take business from is yourself? So a different group of people start to move up. And who usually ends up running the show? The sales guy... Then one day, the monopoly expires for whatever reason. But by then the best product people have left, or they're no longer listened to. And so the company goes through this tumultuous time, and it either survives or it doesn't.

    BusinessWeek: Is this common in the industry?
    Steve Jobs: Look at Microsoft -- who's running Microsoft?

    BusinessWeek: Steve Ballmer.
    Steve Jobs: Right, the sales guy. Case closed.