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by ChuckMcM 4042 days ago
The financial return of being the leader in a market is significant. Consider that grocery stores are not IP protected and yet Safeway has done well. The trick being that you have to have operational expertise rather than technical expertise. The people who will win in the pre-prepared food markets will do so by figuring out the systems for putting the best product possible into the hands of consumers with the least cost to deliver. Then as the market grows they can under cut their competitors and later buy them to increase their market share. Making 2 - 5% margins is fine if you manage the volume without having to scale your costs.