Generosity as a basis of e-business

Friday |

The more developed technology is cheaper, at some point becomes free? The response also helps to understand why the traffic from users on the Internet is determined by the generosity of the content.

In the industrial economy there is a proportional relationship between the performance of the technology and its cost. The best thing is worth. But the advent of microprocessors accelerated process of technology upgrading and making them faster cycles of reproduction of the value of products at lower costs.

More or less in 1988, a cell phone cost $ 1500, but in 1998 (only 10 years later) it cost only $ 200. At present the telecommunications companies give more aggressive in marketing the device for the purchase of a new customer. This enables us to understand where the greatest generosity may become the detonator of the key core business of an enterprise.

What is most evident in telecommunications and other information technology is the same for other industries. Away from the effects of inflation are no better and cheaper cars, medicines, appliances, transportation and services?

Generosity is a key business strategy in the emerging economy. Cheaper products are what critical mass in the growing market is for them. If at the beginning it was a privilege that cheaper telecommunications make more than one line in the house, each family member has a cell phone and that there are dramatic improvements as the identification of who is calling, call waiting or teleconferencing among others.

The demand is changing:

In classical economics the supply of goods grows only if demand increases, but under the principle of constant improvement and cheapening of technology are constantly creating new opportunities for demand (i.e. business). If there is more supply of resources then there is more demand for them.

In this respect, generosity in the new businesses is a key to its expansion in the same way as they are satisfied customers. In other words, generosity is equal to more supply and this in turn becomes more customer satisfaction resulting in more demand.

When information is organized on the Internet, Yahoo is a paradigm of generosity by this. It has been organized more broadly and free information on Yahoo, the more ubiquitous then it becomes recognized.

There are the cases of Microsoft and Netscape which established new businesses based on their generous free navigation of the Web, Sun Microsystems or "gift" the Java code to create a community of programmers in this new language, or QUALCOM "giving "The basic version of the program for managing electronic mail (Eudora) as a function of selling upgrades.

The value of generosity:


Goods and services with more value in a network economy that is emerging as the most shared (ubiquitous), and the most cost effective way to maximize the ubiquity of the gratuity.

I am not suggesting that the new economy is based on the gift of things. No, I'm proposing that generosity is a key strategy for the establishment, expansion or consolidation of business in a networked economy as it has been emerging around the Internet.

Naturally, one might almost say the essence of strategic planning in the web economy, is to determine how to compete and win in a market so generously, which is not only a strategy of marketing business but also it makes sense if generosity is a function of detonation products and services in return.

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