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Old 02-12-2011, 10:22 PM   #26 (permalink)
jamesqf
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Quote:
Originally Posted by Arragonis View Post
The new car issue. Imagine you run a car company. Your aim is to, well, make as much money as possible. To do that you have to

a) sell as many cars as possible
b) make as much profit on each car as possible.

To do a) you need to make sure your cars appeal to as many people as you can. So you make loads of options and variations within reason for your target markets. You also make your brand a desirable one.
The problem with this, though, is that when you design a car to appeal to as many people as possible, you're ensuring that

1) It'll be almost exactly like the cars your competitors built to try to appeal to as many people as possible, so all of you are going head-to-head for that part of the market.

2) There is a significant part of the market to whom your car doesn't appeal at all.

So if you're an intelligent automaker, you might deliberately build cars that don't try to appeal to the mass market, but which have niche markets all to themselves.
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