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Showing posts with label business model. Show all posts
Showing posts with label business model. Show all posts

Thursday, July 14, 2016

Like Alibaba's domination over Amazon, Line's social media platform could soon dominate Facebook

There was an interesting statement made back in the 19th century during the industrial revolution that went, I would rather sell 100 shirts at $1 apiece to the Chinese than 10 shirts at $10 apiece.  This is because the potential for profit using the price elasticity of demand model, where by lowering the price you gain much more consumers, is a powerful tool when dealing with the massive populations residing in Asia.


And to date we have seen how this model works in the 21st century, as the e-commerce business known as Alibaba has emerged not only as one of the top 5 companies in the world, but it is also bigger than both Amazon and Ebay combined.

On July 14, the newest Asian powerhouse went public with their own IPO, and already it has the potential to soon dominate Western social media platforms like Facebook.  This is because the Japanese social media company called Line is based on appealing to customer demands and desires, and they have a population potential of several billion users to service.

It took Facebook five years to reach 200 million active users, but only three years for Line to achieve that same number.  And Facebook would have to wait another three years before launching itself as a public IPO, and at a value several dollars less than Line did today at $42 per share.
Line users per quarter

The bottom line is that so far in the second decade of the 21st century, the potential for growth is far greater in Asia than it is in the West, and especially within the United States economy.  And perhaps this is also why China now has the world's largest bank, and in reality the world's largest financial system, and where the future of economic growth no longer resides in companies coming out of the West.

Tuesday, September 11, 2012

Online games like World of Warcraft forging the new business model and worker

Throughout history, there has always been generation gaps that led to new and innovative paradigms.  The 1960's rebellion against conservative and structured America led these young adults to become founders of the technology and corporations of the 90's and early 21st century.

And now, the video game generation is proving to be not only the workers and executives of tomorrow, but also the buisness models and in many cases, the military of tomorrow.


World of Warcraft is the largest MMORPG in the world, encompassing over 12 million players and monthly subscribers.  In the game, players will discover nearly every attribute of the business world, and have to learn to adapt to new problems, and rely upon both quick thinking, and well planned solutions.

It is also an example of self-gratification and self-criticism.  When you accomplish a task, the rewards are immediate.  When you fail at a task, you learn why you failed, and either get stronger in game to succeed in that task, or go out and learn the skills necessary to overcome a fight you failed at out of ignorance.

Additionally, to succeed in the end game portion of the game, players must learn to work as a group, and group leaders must be well versed in leadership, instruction, coordinating large numbers of people towards accomplishing a goal, dealing with problem disputes, and performing evaluations.  They also learn to set goals, and achieve successes to move onto to the next prize.

All of these things are not only highly desired in the business world, but usually cost thousands to tens of thousands of dollars in training to learn what can be accomplished by playing a 'game'.  A game in which interest, curiosity, merit, and self and group accomplishment are the prizes that keep people playing, and wanting to get better.



The military has been one of the first agencies to recognize the skills formed by video game players, as many of the new drone pilots come from a background of onling gaming.  As 21st century warfare becomes more computer generated than actual boots on the ground, those that receive a free education while playing in an MMORPG will be better prepared than the thousands who pay exhorbitant amounts of money to go to college to learn tired old concepts that no longer work in an ever evolving environment.

Thursday, March 22, 2012

America's new job paradigm: Temporary hiring replaces permanent employment

President Obama has been very quick to use the recent BLS reports on new jobs and unemployment claims to justify his economic initiatives are working, and creating jobs for Americans.  But when you dig just below the thin veneer of manipulated data models, you will find a new and disturbing trend.

A large portion of new job hires are for temporary positions at lower wages and without benefits.

…the rising jobs are purely a quantity over quality trade off, as every month more and more temp jobs take the place of permanent ones, especially those of former professionals from the FIRE sector. In fact, in January temp jobs soared by the most on record, and the total number of temp workers was just shy of all time highs. Ironically, as this happened, discretionary online retail companies have seen their stock price soar to record highs. One of the primary drivers for this has been the increased "efficiency" at these companies' hubs - their warehouses. Which just happen to be staffed with temp workers. - Zerohedge

The Warehouse is the new means of running am internet based business at the detriment of a Main Street brick and mortar complex.  Companies like Amazon and CompUSA run completely out of the internet, and vast warehouses that are filled with temporary employees working 32 or less hours.

This allows them to undercut their competition through labor costs and limited benefit programs, but not unlike the 'Sweatshop' models of China and other Asian producers.

This infograph by Business Insurance.org shows just how the 21st century sweatshop in America works, and why it has grown because of the failed job policies of the second half of GW Bush, and the entire term of Barack Obama.


Courtesy of businessinsurance.org