If there are only two competitors for a product, then it is either a niche product or there is room for more competition, usually, who can use disruptive marketing.
The problem is, for very large markets, companies will abuse their position to prevent competition from forming. Coke and Pepsi should not be allowed to simply buy every new drink that comes to market.
Anyway, I digress. The government doesn’t have the balls to bust monopolies anymore.
That was an example that doesn’t really depend on there being exactly 2 competitors. If there are 20 competitors and they’re all spending a lot of money on advertising then they’re all producing a net negative
I mean there’s probably some small amount of money they could spend on advertising that would be a net positive because it would inform the public of the existence of their product. But beyond that, they’ve moved from informing the public into trying to convince the public to buy their product. There’s simply no limit to the amount of money you can spend trying to convince somebody to buy something and no limit your competitors can spend to convince them not to!
If there are only two competitors for a product, then it is either a niche product or there is room for more competition, usually, who can use disruptive marketing.
The problem is, for very large markets, companies will abuse their position to prevent competition from forming. Coke and Pepsi should not be allowed to simply buy every new drink that comes to market.
Anyway, I digress. The government doesn’t have the balls to bust monopolies anymore.
That was an example that doesn’t really depend on there being exactly 2 competitors. If there are 20 competitors and they’re all spending a lot of money on advertising then they’re all producing a net negative
I mean there’s probably some small amount of money they could spend on advertising that would be a net positive because it would inform the public of the existence of their product. But beyond that, they’ve moved from informing the public into trying to convince the public to buy their product. There’s simply no limit to the amount of money you can spend trying to convince somebody to buy something and no limit your competitors can spend to convince them not to!