25iQuiz: Do you agree that's what changed?
"HP’s business model was to sell printers at a discount and make its money on ink cartridges—classic razor-and-blades. 'That model made sense when the goal was to penetrate more consumer homes and more offices'." https://news.google.com/articles/CAIiEFUFaahYfiIzgfRYbDSMTdMqFQgEKg0IACoGCAowrqkBMKBFMMGBAg?hl=en-US&gl=US&ceid=US%3Aen …
Did a change in HP's goal require a new business model or did HP's ability to sell enough of a complementary product change?
From 2006: "The printer itself accounts for only 1/3 of the profit pool over its life, whereas cartridges account for 2/3s." https://www.bcg.com/documents/file14706.pdf …
"Absent customer lock-in, the marketer will be unable to make up for the price subsidy on the initial razor through higher margins on the blades."
"Rather than compete on price, the printer maker [Epson] is dropping the cartridge issue entirely’’ http://iranarze.ir/wp-content/uploads/2016/10/E2554.pdf …
"Kevin Rippey, an Evercore ISI analyst, calls Spotify a “pure play on a loss-leader category.'" https://www.barrons.com/articles/two-analysts-have-ditched-sell-ratings-on-spotify-why-to-remain-skeptical-on-the-stock-51570236239?refsec=technology … What can Spotify cross-sell that has defendable higher margins and a huge TAM?
"Goldman has lost $1.3 billion on its consumer bank" https://www.google.com/amp/s/www.wsj.com/amp/articles/goldman-sachs-tries-banking-for-the-masses-its-been-a-struggle-11569643252 … What can Goldman cross-sell that has defendable higher margins and a huge TAM?
"HPQ fiscal third quarter results posted Thursday showed printing supply revenue falling 7% from a year earlier to about $3.2B."
"We need to optimize our business model, maximize the installed base of 150 million printers."
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