May 29, 2024 at 12:00 am
Comments posted to this topic are about the item Common Algorithm Concerns
May 29, 2024 at 7:12 am
When I used to work for an advertising agency we knew of two competing catalogue retailers who would each almost certainly choose a tool on the basis of whether the other was using it. "If our main competitor is buying this then they must have a good reason for doing so".
Within the geographic area it was likely that some staff from one company would end up at the other albeit not through a direct route. This probably lead to decisions on tooling as well. "This person used to work for our competitor and has had a good experience with this tool".
From my perspective both companies had mis-identified the problem and were looking to buy a solution for that misidentification. Ultimately it is the human creativity and the resulting decisions that make the difference. Without a change in the ways of working the value you can get from a tool is limited. Both competitors investing a lot of time and money and the end result is a slightly different way of doing exactly the same thing to no real advantage.
May 29, 2024 at 12:50 pm
Not only does using the same SaaS pricing service as your competitor hurt consumers by creating a market that's indistinguishable from collusion - but it can also put your company at a competitive disadvantage. Thinking outside the box, agility, and innovation are what gives small and medium sized companies leverage against larger competition.
"Do not seek to follow in the footsteps of the wise. Instead, seek what they sought." - Matsuo Basho
May 30, 2024 at 9:09 am
Not only does using the same SaaS pricing service as your competitor hurt consumers by creating a market that's indistinguishable from collusion - but it can also put your company at a competitive disadvantage. Thinking outside the box, agility, and innovation are what gives small and medium sized companies leverage against larger competition.
I agree strongly with the 2nd statement. Once you sell on price you are in a race to the bottom.
The 1st one I'm not sure about, especially with regard to hotel pricing. It boils down to what parameters go into the algorithm and whether the price is based solely on that algorithm. Premier Inn are famous for their cooked breakfast and comfy beds. Radisson Blue and Marriot all have their specific selling points..
In the UK the price of a room in a hotel varies by date and a factor in that is whether your hotel is within walking distance of a major entertainment venue when a major act is performing. The price can go up by an astronomical amount. If you have an identical room in a hotel 3 miles out then the prices will also shoot up, just into the low earth orbit price range rather than fully astronomical.
Beyond the direct impact of the pricing algorithm there is also the influence of price comparison websites to consider.
Viewing 4 posts - 1 through 3 (of 3 total)
You must be logged in to reply to this topic. Login to reply