Reinvent business woth digital economics
Chris Anderson shows us how digital businesses and online services are so usefull and well known nowadays.Therefore,people may use this strength to start up a business or use them during the business progress.
His 2006 book "The Long Tail" explained the economics miracle of Amazon.com,illustrating how a company could make more money selling niche products than mass products thanks to the internet's infinite shelf space.It catapulted him to the A-list of best selling pop theorists.
I totally agree with his idea.Nowadays,almost all people know how to use computers and networking,which was not quite well-known 4o years ago.The advantage of that is,it's easy to research,easy to trade and also the fastest way to find informations about the products.There are no shops that don't have a website included.
Furthermjore,the cost for the owner of the business will be less.They don't have to spend a lot on advertising.Advertising on the internet is also very easy.OF course,by television,the details and information about the product will send faster and also higher quality advertisement.But for simple products,which can be inferior goods,which are reasonable for the crisis ,is quite a good way to advertise.
Anderson says the most interesting new business models follow a "freemium" template:that is,free product that sell premium services.This is the model used with success by software applications such as Spotify,Skype or Wordpress.
So Chris Anderson's Theory is quite right and I agree with his opinion."The old model for business was 'make something people will pay for'.The new model is people will want and something they'll pay for'.
Diseconomies of scale
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Diseconomies of scale occur when a business grows so large that the costs
per unit increase. As output rises, it is not inevitable that unit costs
will fa...
7 years ago
1 comment:
This has too many English mistakes
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