Am I wise not to trust Adobe entirely?

Started 2 months ago | Discussions thread
Zabalint Regular Member • Posts: 202
Re: Am I wise not to trust Adobe entirely?

Elasticity and pricing point to maximize revenue drives a lot of the decisions. If you could double the price of a product and only lose 10% of its customers, what do you think you would do? With 90% of their customers hanging in there at double the cost, they will have increased revenues by 80%. Now if they lost 50% of their customers, it would be a wash. If they lost more than 50% of their customers, they would lose revenue.

In long terms it doesn't work this way. Their software are considered as industrial standard, and the more customers they lose, more the chance is that they may lose this position. If they double the price, and then lose 30% of the customers, they would still be better in revenue, however those 30% would choose an alternative, and those alternatives would become more popular, which would make them more attractive to people who want to learn something useful.

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