[marcosdumay]

> Owning a $1B market is pocket change for Alphabet; it's not even worth their while.

If this line is true, it means Alphabet is not free from the Innovator's Dilemma. That means they have a very systemic risk of being undercut out of a market.

Anyway, it doesn't make any of what you said wrong. It's just interesting because avoiding the dilemma was one stated goal for Google when creating Alphabet.

And, well, another possible explanation is that they have a limited productive capacity, so they can not physically sell to the entire market.

[nostrademons]

Alphabet's absolutely subject to the Innovator's Dilemma. I left Google a few months before it became Alphabet and I could think of a half dozen markets where they'd be potentially vulnerable to it. (I also personally had projects I worked on that made $100M and were canceled because they couldn't make a billion. $100M would be absolutely awesome in most other companies, but it's pocket change to Google.)

The tricky thing about Innovator's Dilemma situations is that it's very difficult to predict a priori which $1M markets will be stuck at $1M and which will eventually grow to become multi-billion, because this usually results from changes in consumer behavior or technological capabilities that haven't happened yet. It's a "dilemma" because the companies that overlook these opportunities are acting rationally.