Five Elements of the New Economic Landscape

Derived From

Jeff Jarvis; What Would Google Do?

PROFIT : Like a big storm that has washed away the topsoil, the internet has redesigned the economic landscape. What was previously profitable may no longer be. Reconsider your situation. Here’s five new economic contexts to work within…

1 Think SMALL

Previously, you had to be big to make an impact. And big meant centralized control in a single enterprise.
Now the collective power of millions of individuals are making their presence felt. Ebay is competing with Walmart.
Bloggers can now earn a living thanks to Google’s targeted  micro advertising. And, some bloggers are now attracting more traffic and links than major media sites.
Links and networks on platforms have changed the economics of scale.
Small is the new big.

2 Be Abundant

The economic law of supply and demand is being challenged. Previously, if you controlled a scarce resource you could set the price for it. Think oil, airline seats and shelf space.
Now, many things that were scarce are now abundant.
Google has built a business model based upon what is abundant: information.
The more content available, the more important search becomes. And, there’s more places for it to place its ads.
For more see Book Rapper issue: Marketing Now-How.

3 Gift It

The Open Source or Gift Economy is typified by armies creating Linux, Apache web server software and the Firefox web browser. Created without pay by passionate users.
Being part of something is important – we all want to belong. (See Book Rapper issue Brand Worship)
Start a cause, build a platform and invite people to enhance it and own it.
Now that might not be a great business model to reward your shareholders and it might be the most effective way to get the job done. Which is more important?

4 Find Your Niches

In the good old days bestsellers, blockbusting movies and Top 40 hits were what we strived for.
Now the mass market has become a mass of niches. We now live in an era of choice.
Google’s advertising business is built upon niche selling – targeted ads pertinent to the page you’re viewing.
The Long Tail of economics provides new opportunities for value creation through having multiple niches.
For more see Book Rapper issue: Make Money from Niches.

5 Eat Your Cow!

Have you got a protected market? A closed shop? A cash cow? Well, it’s time to eat it before someone else does!
The transformation of the economic landscape is changing what is controllable and profitable. What may have been viable yesterday may not be tomorrow.
If you’re not willing to cannibalize your business to move forward, someone else will. It’s just a matter of when…
You’ve been warned!