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by Culonavirus 995 days ago
The really big dogs always work with long term, strategic plans. When something looks too generous, it most likely is just that. Is it profitable? Probably not. But that is the point. Offer a service under market value, wait until the competition goes away, then make bank. There are many, many examples, but something like Google Workspace comes to mind. Make it easy and cheap to get on board, get people and businesses used to your product, then slowly boil the frog alive.
2 comments

The more charitable interpretation is that companies sometimes explore new markets with a “see where people find value, figure out how to monetize later” philosophy.
At these meetings both interpretations motivate agreement but neither is mentioned.
I’ve been in a lot of those meetings where “we don’t know what users will find value in, get it into their hands and see” has been very explicit.
> Offer a service under market value, wait until the competition goes away

It feels like this doesn’t work as well with a lot of software services as it does with physical brick and mortar businesses.