In the last days of September 2014, Rackspace customers were faced with multiple issues regarding service uptime, security concerns and network outages. The worst hit were the ones who were using Rackspace’s Chicago datacenter. I happened to be one of those customers. This is my story. Rackspace: A beacon of hope for all things hosting Let me begin by saying… Read more →
I wanted to explain to a set of interns how this concept in Adwords worked. An hour later, I realized that had I chanced upon this infographic by Google earlier, it would have saved my time! Related: How to setup your Google Authorship correctly Link Building in the Content Marketing Era Google Analytics launches one more course Visual.ly now supports… Read more →
9 months into this business, here’s a gem of a lesson that I have learnt. It’s good to have vendor’s guilt (you need to be clued in on Amit’s blog for this term, he
is going to has shed more light on this – Vendor’s Guilt). It keeps you on the edge, it makes you deliver on time. However, it’s great to learn how to control this feeling and not get overwhelmed by the same. On a more personal note –
One of the primary reasons for starting a services firm was to beat the run of the mill service providers that I see in the Indian IT Services market. Service providers need to be value adding rather than extracting value from the organization.
Being steered by this value, the focus has always been on adding value. Getting recognition and paid for providing this value is the differentiation between a good and a great vendor.
As a person who literally lives off the internet, one of the first things I do when I get a new machine is install Chromium or Chrome and then go and install the Ad Block Plus plug-in. Fortunately, I am well past Windows, so I do not have to go to the trouble of removing IE! Having said that, I… Read more →
One of the great things that attracts investor capital is the ability of third world countries to show double digit growth. This story of almost all developing nations mean a scope for investments for other organizations present world-wide. Various countries have different economic policies, such as the open policy by China to attract huge FDI, and the partially open economy by India which invites FDI but limits the amount which can be withdrawn.
Why is this story selling for the past 5 or so years?
The answer is simple. Third World nations represent an inefficient market. A place where the buyers and sellers do not have access to complete information about the transaction. Since there is hardly any organized sector in such markets, there is virtually no analysis done on the varied types of transactions. This absence of information creates an inefficiency in the market … the simple act of saving each and every market transaction and making it available to the public creates the huge value of wealth maximization for both the buyer and the seller.
Wealth Creation by Information Symmetry
Imagine a scenario where a seller wants to sell a book for five dollars, it’s slightly used but the book is not easily available in the market. But the seller does not know that … the seller implicitly assigns a value of 5 dollars and expects the same amount in return. Now if a buyer who values the book a lot more than that were to find about the book, then he will finish the transaction at five dollars (even if he were ready to pay more). So what just happened back there? A book was exchanged for a lesser amount than what it would have fetched. Had the seller known that it could have fetched more (if he had access to that information), then the seller would have generated more wealth by selling at a higher price.
Take a look at this scene from Pretty Woman, had Julia Roberts known that Richard Gere was willing to pay 4000 USD for the week, then she would not have settled on 3000 USD in the first place! This is the power of Information Symmetry!
So in developing countries such as Brazil, Tanzania and India, the one sure shot formula for wealth creation is by creating an information market and making it available to the general public. We can also refer to information markets as Free online Classifieds, a site where people can post information about their buying and selling requirements.
We wanted to sell our six year old car and used a similar service to get the highest price for a used car. Access to such an information market not only ensured that we got the highest bidder, but also reduced the transaction hassles for us.
Any information market (such as an online classified) brings the buyer and the seller on the same platform and ensures that the seller gets a higher price and the buyer gets a chance to purchase the same price at a lower cost.
An information market is hugely successful wherever the market is fragmented and does not have any organized player.
An information market also increases the reach of local organizations.
If you have an e-commerce start-up and are just starting your marketing outreach program, then this is a great infographic which can be of help. Social Media can be used by organizations for ATL activities such as branding and for BTL activities such as promotions. The visual and witty element inherent in social media helps brands to sell well. The… Read more →
Every technology that is embraced by the world goes through a process of adoption. Gartner instituted this as the hype cycle. What is the Hype Cycle? The hype cycle talks about how any technology goes through the process of being talked about, being heralded, being written off and finally being adopted in mainstream businesses. The graph you see above you… Read more →