Google-Microsoft Crossfire Will Hit Consumers
theodp writes "Newsweek's Dan Lyons doesn't know who will be the winner in Google and Microsoft's search battle, but that's not stopping him from picking a loser — consumers. As we head towards a world where some devices may be free or really cheap, consumers should prepare to be bombarded by ads or pay a premium to escape them. 'The sad truth is that Google and Microsoft care less about making cool products than they do about hurting each other,' concludes Lyons. 'Their fighting has little to do with helping customers and a lot to do with helping themselves to a bigger slice of the money we all spend to buy computers and surf the Internet. Microsoft wants to ruin Google's search business. Google wants to ruin Microsoft's OS business. At the end of the day, they both seem like overgrown nerdy schoolboys fighting over each other's toys.'"
All that tells us is that (in New York at least), the vast majority of consumers want cheap pizza more than they want "good" pizza. But the fact that you can still find good pizza in New York also tells us that there is also a market for more expensive, nicer pizza. A smart entrepreneur might target that market rather than join the race to the lowest price.
Recenly in my town, the curry restauranteurs complained to the council. Many restaurants were allowed to open on the same street, and they complained that the competition had pushed prices so low that they couldn't make money.
My reaction to this was: "compete on something other than price". Curry houses attract repeat custom. Surely there are plenty of people who'd happily pay £5 for a delicious curry in pleasant surroundings, rather than £2.50 for a crappy one at a plastic table. Competition need not result in a race to the bottom, unless that's actually what consumers want.
Judging by the people I saw there, what they want above all else is big pizza.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."