Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Oct. 06, 2019 1 min read + Your Authors

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'." 

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." 

"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’’ 

"Kevin Rippey, an Evercore ISI analyst, calls Spotify a “pure play on a loss-leader category.'"  What can Spotify cross-sell that has defendable higher margins and a huge TAM?

"Goldman has lost $1.3 billion on its consumer bank"  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." 

You can follow @trengriffin.


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