Thursday, November 17, 2005

Zero Profit Condition

Slate mag and Seth discuss the Zero Profit Condition. "If you're in any business where the cost to enter as a competitor is very low, you've got this problem.... The only way to win is to break the rules. To play by your own rules, creating a market in which the cost of entry is very high, or even impossible. If you're the only one, then you win, by default." The ISP industry is kind of a zero profit condition. But the lesson of making new rules and breaking the old ones is the key. It has been called creating a new niche, like Southwest Airlines did. Or creating a new market like Starbucks did. (Wouldn't you like to be the Starbucks of your local IT-IP community?)

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