Monday, October 3, 2011

Globalized Idea Based Economics and Implications





The new economic reality consists of a Globalized World. With Trade barriers removed and Technology advancing all countries are now interconnected. Consumers will benefit from increased competition, better quality products and lower prices. Product Manufacturing Businesses will find it increasingly difficult to compete in this new economic environment. Firms that fail to innovate may be replaced by new technologies and breakthroughs. Every country in the World must now compete against each other to develop the Best Products

Free Will, Free Speech and Free Markets were once only available to few of the World's leading Nations. Previously "Industrialized" Nations such as the United States, Europe and Japan once exclusively enjoyed the Competitive Free Market advantages brought by Democracy. Now these Values are rapidly expanding to every corner of Globe. This increases the ability of any Nation to compete on a Global Scale. Economic Disruption will occur more frequently now than ever.

In today's economy Ideas and Intellectual Capital can be worth more than Natural Resources. Would you rather have all of the Intellectual Property of Microsoft Corporation or all of the Copper in a Mine? Copper is a finite resource. Relevant Patents, Trade secrets and Intellectual Capital have nearly infinite applications and commercial potential.

This presents a unique dynamic. A Game Changing Disruptive Idea can be worth far more than all of the Gold in a Mine. However outdated and irrelevant ideas are worth nothing. Yet Physical Assets and Natural Resources are not likely to be rendered useless overnight.

In 2005, Social Networking Site MySpace sold for $580 Million to New Corporation. In 2011 Myspace was sold for a mere $35 Million. That is around 94% lower. Facebook during those 6 short years established itself as THE Social Networking Site. A better idea and platform came around, and users migrated away from MySpace.

Breakthrough advances in Alternative Energy and Huge discoveries of new Natural Resources would NEVER depress the price of Oil down 94% over 5 years’ time. I cannot see $100 oil trading for $4 Dollars per Barrel in 5 Years under any such conditions.

In the Globalized Idea Based economy companies need to constantly evaluate their prevailing assumptions and strategic plans. We all now compete in a Global Marketplace. Ideas from around the globe are being cooked up right now with the intention of putting your company out of business.

"How do I get my company in position to take advantage of this new market?"

That is the Billion Dollar Question. Both Challenges and Opportunities are greater today than ever before. An experienced Business Consultant can provide insightful solutions on how to navigate through uncertainty into prosperity.

Call Ray Modad today for more information at 586-453-9430.

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