Software is eating competition

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"Software is eating the world.” Software is also eating competitors and potential competitors. Nowadays, firms not only use software and the internet to deliver products and services to their customers. They use it to understand the market, crush the current competition, and implement potential barriers to entry. Software underlying digital products and services enables changing prices and product attributes in a targeted way, at a quicker rate than ever, and at a fraction of the cost. This brought a lot of value to consumers by making the platforms and apps they rely on more responsive and tailored to their needs, but it also brought in new ways to restrict consumer choice, increase consumer switching costs, and new venues for predatory behavior.