Friday, May 13, 2011

Business Strategy: One-Sided Dependencies Can Be Deadly.

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Business owners, leaders, entrepreneurs, futurists, internationalists, risk analysts -- the moral of this article is this: Avoid Being Monopolized.

Said in different terms, don't ever put all of your eggs into someone else's basket -- it's far smarter to put some of his eggs in your basket as well (we call that "insurance" in New York), and to put lots of your eggs into lots of baskets.

Diversify against dependency.

I've heard a great deal about the supposed "efficiencies" of monopolies, but I believe that these economies of scale are far outweighed by the waste of resources, loss of quality in products, services and customer care, and the victimization of people who have been deprived of choice.

While you still have choice - use it. If you don't feel that you have a choice, start planning a "workaround," as they say in modern-day geekspeak. - DC via TNNWC


Entrepreneurial Applications And Platform Users - Are You At Google's Mercy?

Dear PR Professionals, E-marketers, Entrepreneurial Publishers, Frugal Small Business Owners, Fellow TNNWC Members, Strategic Planners, Global Futurists and Trend-Spotters:

Google is a colossus of a company. As they acquire other applications providers, social media services and various other "business-tool" properties, they grow larger, both horizontally and vertically.

Sooner or later, we will all have some type of business dependency upon Google (whether directly or indirectly) in the critical path of our business processes. Our prospective vulnerability is tremendous.

If Google should change some of its posting or usage guidelines, experience a lengthy failure or begin to charge significant fees directly to end-users, small business which have built themselves upon a Google-owned or Google-controlled platform will become victims.

I would suggest that every responsible strategic planner, systems expert and entrepreneur start to create certain backups, alternatives and other safeguards by developing alliances (and possible redundant systems) with some of the smaller, non-Google-affiliated applications and services providers in the interest of 1) protecting the continuity of your business, and 2) keeping the spirit of innovation and entrepreneurship alive by patronizing our brother and sister growth-mode companies instead of just allowing another potential monopolist (i.e., Google) to lead us down the path to disaster as willing victims.

You have seen examples of what can happen when a resource is controlled by a select few parties...Big Pharma...Big Oil...Big Government...Financial Institutions "Too Big To Fail" -- supporting innovation, small business and entrepreneurship and a bit of healthy competition are necessary in order to retain any real freedom.

As Lord Acton said: "Power corrupts. Absolute power corrupts absolutely." It is simply a matter of Human Nature. The more that we take, the more we feel that we are entitled to take.

When a small business or a competitive company wants our business, they accommodate us. As these smaller enterprises grow much larger, they begin to simply take our business.

If I may be permitted to wax philosophical (this polite comment is rhetorical, because I am going to write whatever I please anyway), capitalism is a wonderful system, provided that legitimate competition is fostered, financed and given its share of benefits and our patronage, instead of government-imposed barriers to entry and growth...

Here's an ominous reminder, taken right off of Blogger's "Known Issues" Blog...

Blogger Status

Friday, May 13, 2011

We’ve started restoring the posts that were temporarily removed and expect Blogger to be back to normal soon.


Posted by at 06:07 PDT

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I find this a bit disquieting. But then, I am not a proponent of "giving in" to monopolies - I am a proponent of innovation and collaboration amongst the smaller entities which have always been the engine of every industrialized economy, and which help to keep us civilized, sharp, and non-drones.

Did I hear someone say that "Competitive, compassionate capitalism might be a good idea?" I hope so. It is better to be a consumer (with choices) than a victim (one cattle car and one certain destination).

Faithfully,

Douglas E. Castle (http://aboutdouglascastle.blogspot.com/)

p.s. How's the above blog address for a study in irony, eh?





C' MON - GOOGLE ME.

Hint: I am not Castle Douglas, which is the regal edifice in Scotland. I am a mere person -- Douglas Castle

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