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."
You can follow @trengriffin.
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.
Enjoy Threader? Sign up.
Threader is an independent project created by only two developers. The site gets 500,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Running this space is expensive and time consuming. If you find Threader useful, please consider supporting us to make it a sustainable project.