A recipe for mayonnaise, one of the very most popular condiments in America. This intellectual property is even more open up than open up source: it’s in the public domain. So how are companies like Best Foods and Kraft in a position to make it in the meals industries with their variations of mayonnaise? Simple: by offering predictability and profiting from economies of range.
For the finish users of mayonnaise, like delis, restaurants, and consumers, Best and Kraft Foods provide predictability of quality. No need to worry about any of it coming out too sour or too lumpy–it’s the same taste atlanta divorce attorneys bottle. Important when you make sandwiches all day long. For the resellers of mayonnaise, like grocery supermarkets and stores, they provide predictability in supply.
Imagine losing loyal customers because you don’t have something as basic as mayonnaise in stock. For all but the largest resellers, they offer the advantage of scale also. 3 retail, you won’t save much by looking to make it yourself. And how do the manufacturers themselves benefit? Through distribution and scale. By making a vast distribution network of resellers that allows these to manufacture and sell mayonnaise in large quantities, they could translate a thin gross margin into respectable returns on investment. Just what exactly if somebody got possessed “mayonnaise”?
Perhaps there’d be a mayonnaise billionaire someplace. But more likely, it’d be much more expensive, many fewer people would eat it, and it’d just be another odd condiment on underneath shelf. 1. There’s more to a product than just knowing how to make it. 2. You can always make money by delivering the complete package to the end user.
- 1/4 tsp baking powder
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This is consistent with Linux being truly a disruptive technology, as explained by Clayton Christensen of the Harvard Business School. According to Christensen, a disruptive technology is one which is lower-cost and simpler intrinsically, but inferior to that of the market head presently. It first gains market share among minimal demanding customers or applications, those who find themselves over-served by the dominant technology. As the performance and efficiency of the disruptive technology improves, it moves up-market, gaining market talk about among more challenging users, eventually displacing the prominent technology.
Without stating so, IDC identifies Linux as a disruptive technology, just as that mini-computers displaced a segment of the mainframe market, and systems of computers running Microsoft operating systems displaced a sizable part of the mini-computer market. Interestingly, in promoting TCO as a positive benefit for its Win2K operating-system, Microsoft is making the same discussion against Linux that IBM likes to make in favor of its AS/400 (iSeries) platform against Microsoft.
A study conducted in 1998 by IDC, showed that users of IBM’s AS/400 loved a lower TCO compared to both Microsoft and Unix systems, due primarily to IBM’s significantly lower staffing requirements. Now the same argument has been made on behalf of Microsoft over Linux. But, in the same way the AS/400’s lower TCO did not slow the progress of Microsoft, it is improbable that Microsoft’s lower TCO, if true, will decrease the advance of Linux. Linux will probably continue to gain floor as a mainstream alternative to Microsoft os’s. IT decision makers should assess Linux and Microsoft on the case-by-case basis, considering not only TCO however the specific workload requirements, existing and future staffing needs, and the organization’s tactical direction for this infrastructure.