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The Google Geese and the possible Ducks

'But I have a different concern.

When I ran sales and marketing at Intel, I used to teach marketing classes to aspiring sales and marketing employees. One of the topics I discussed was pricing. I used to explain to them that we should price our products based on the value to the customer. When our products were new and unique the value of those products was determined by the opportunities they created for our customers. I would then explain that once those products matured, others would copy them or offer different products that could perform similar functions. At that point the value of Intel's products would be determined by what others charged for their products. If enough alternatives existed in the market then those products would be sold based on their cost to manufacture and if enough capacity and alternatives existed, the price would get uncomfortably close to the manufacturing cost. When that happened in the words of Gordon Moore, another Intel founder, Intel's golden geese would turn to lead ducks.

So here is the challenge Google faces... '

Read the rest here.

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