When dinosaurs fall like dominos

“The New New Economy: More Startups, Fewer Giants, Infinite Opportunity” by Chris Anderson (Wired Magazine, June 2009) If you’re trying to make sense of what has happen and of what’s to come Mr. Anderson sheds some valuable light on the matter. As expected, there are two AU caveats:
1) Capital was traditionally only available to fairly large companies. The internet changed that. Investors can not only move money quicker and easier, they now have a tool for mitigating risk by providing a better way to identify and evaluate the smaller companies with the potential to be the next big thing. (Note: This relationship also works in the other direction. The internet provides a platform to companies seeking investors.) The large companies have reached growth capacity, the smart money is looking for better returns, and there are small upstarts lining up to accept that backing. The internet provides the frictionless fluidity to make that happen.

2) From the consumers’ side the internet provides each individual a choice. No longer are consumers forced to consume the me-to, mass marketed products and services that are the by product of the large companies’ cookie cutter (i.e., economies of scale) approach. Also, consumers are no longer at a disadvantage in terms of the availability of information. They know what they want and they know where to get it. Big is out. Small and personal is the new black.

The real question is, will the USA be the next debt ridden, too-big-to-fail dinsaur to fall?

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