Quote:
Originally Posted by Bodhisattva  Right. Cost.
More specifically... Lower cost.
Lower cost equates into more customers.
More customers equates into higher sales.
Higher sales equates into profits. |
Not necessarily. Lower cost doesn't equate to more customers. Furthermore, some business models want very few customers. They derive their 'value' from being exclusive.
Quote:
|
Competition drives down cost, increases technology and service in the effort to gain consumers that will buy your product over the competitor and this directly results in higher profits for the winning business.
|
The last part isn't necessarily true. Higher profits don't necessarily come from being more competitive. You may be making less then you did before competition. Airlines for example. They have been making far less since deregulation.
Quote:
|
So you have the first step... cost, but you are not integrating it into the bigger picture.
|
And you don't seem to quite understand that high profits aren't the conclusion.