Software has near-zero marginal cost. Henderson’s curve applies to cumulative users or data volume . Google, Meta, and Tesla all exhibit steep experience curves: every billion searches or every million miles of autonomous driving data makes their product cheaper and better. They are executing Henderson’s logic to perfection.
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: Henderson pioneered the observation that unit production costs typically fall by 20% to 30% every time a company's accumulated production experience doubles. This provides a mathematical logic for pursuing high market share to achieve cost leadership. Strategy as Time Compression Software has near-zero marginal cost