I broke a tiny trackball off my phone. I then received a $40 (20% of the total cost of the device) quote from a company with a physical store. Their main claim was the expertise in fixing trackballs. Dissatisfied with this quote, I scooted over to youtube. Watched a few short videos about fixing trackballs. I then swung by amazon.com and picked up the trackball for $9 postage included. 4 days later my device was as good as brand new.
The firm that gave me the $40 quote (700% markup) was the sole authorized dealer in Atlanta. Since they were the only game in town it was easy for them to engage in careless rent seeking behavior. Just a few year ago I would have had no choice but to fork over $40 plus tax. Today, the Internet has swung the balance of power in my favor where I now have a say in a transaction that traditional I would have been left to the mercy of the service provider.
The end is near for firms that specialize in the business of lack of / the distortion of information. How many more times does does this scene have to play out before some businesses realize that, in a short time, there will be no business in their present business. How many businesses can survive on only the payments to their factors of production with no additional income from their rent seeking practices. Only those will exist in post Internet world. We inch further to perfect competition in some industries everyday.
start-up
18
Feb 10
Selling Tricks
31
Jul 09
On Gangs and Entrepreneurship In Africa
Walking through the ruins in Rome. It was shocking to see elegant pillars and foyers tagged with graffiti. Gang members marked their territories with no regard for the old time institutions, history or past traditions. As far as they were concerned this territory was their and they wanted the whole world to know it.
Entrepreneurship is about boldness, a level of disregard for institutions. Entrepreneurs spot a ‘need’ and they fill the need. It is as simple as that, every other encumbrance is just a means to achieve this goal. Needs abound on the African continent. Large corporations and old time multi-nationals operating in Africa have made us believe that these needs can not be met. It is true that many of these need can not be met given the existing market structures, but the good news is that entrepreneurs are oblivious to market research anyway. It does not really matter, they spot a need and they meet it. The existing underlying market structure is only a secondary consideration in the minds of those who seek to bring about true change on the continent.
African entrepreneurs more than ever before need to be bold. It is true that the culture and traditions may not support this way of thinking, yet to succeed as an entrepreneur on the continent a selective disregard for existing markets is required. Do not seek to fit into existing markets. Think differently. Unfolding global events already question the integrity of existing market structures anyway. When a need is spotted, just tag the industry and care less about how long it has existed.
Remember, just tag it.
