Student or Learner
I'm not sure what the following in red is saying. Please explain it more easily.
The real risk is not that consumers will stop paying for things they value; it is that rival companies will learn how to use the unprecedented power of the internet to reach enormous audiences, potentially by giving away for free what you are trying to sell ...... So you should stop worrying about free. The iron laws of economics, competition and technology mean that it is here to stay. Smart companies will instead look at how they can build upwards, embracing or accepting free, and figure out how to build close, direct, consumer relationships with customers ...
The first passage in red means that powerful corporations will never give up the practice of giving things away for free in order to benefit themselves in the longer term.
Probably the best recent example of this pernicious practice was demonstrated by Microsoft in the 1990s. At that time virtually every new PC came with a free copy of MS-Office. Microsoft was making such huge profits from the sale of Windows licences that it decided to forgo profit on its Office suite temporarily. After this predatory practice of giving the software away for free had obliterated all the competing word processing and spreadsheet software for all practical purposes, Microsoft stopped it and began charging for MS-Office in an environment almost free of competition. It had created a virtual monopoly for itself.
I don't think the second phrase, "build upwards" has any special meaning. That whole sentence is just corporate pep talk.
Last edited by probus; 01-Dec-2013 at 03:51.