… Through Value Scale
Monopolies and oligarchs battle all on their own… Google, Amazon, et al. “takes all” — the world knows it. But while others claw their way to become billion (if even million) dollar companies, the landscape is changing while some of the most essential rules of ground play have become essentially obsolete within their business and organization root of traction.
The root cause of this financial and organizational flaw has much to do with smaller and less profitable companies defying the laws of appropriate value scale. Along with the necessities which will enable them to compete within the public and private infrastructure. Companies such of the likes of Amazon, Facebook, and Google has (see P3) scaled tremendously within the guidance of corporate and government partnership.
Ignoring the power of oligarchs (in the case of the smaller companies) places the larger companies at a greater advantage, which allows them to profit and scale (feed) off smaller, and even less developed companies. This is possible by utilizing the demand structure, and leveraging off (OCU) Other Companies Users. This also includes unidentified use of “sophisticated services.” What I am recommending is: Incorporate a cash flow system where the consumer is dependent on the producer — financially.
“What’s eating the startup world?” — The root cause of this financial and organizational flaw has much to do with smaller and less profitable companies defying the laws of appropriate value scale
This presumes to be the case; smaller companies are producing, while monopolies consume. Consume means anything the market produces will turn the profit and aims it towards itself –
When the problem is clear… less profitable outcomes appear and acknowledgement of risk in ‘expected shortfall’ shows to be a variable long before some privately held start-ups ever turn a profit. This is failure to build with the end in mind — in this event, hypotheticals should be elaborated within the corporate mantra.
“This is a relationship of cooperation and competition” —
The struggle is obvious and pretentious… hurting reputations, and misconstruing company disciplines. Coming down to the very pathology, wondering how some companies are being created, and why.
There is a great psychology behind not yet ‘chased’ based on consumer principles, product scheme, economy, market infrastructure, and social responsibility: The pretentious quest to compete with tech monopolies (without skill, or demand) shouts the deep seated dream of becoming next ‘upstart’ culture — without earning rights.
Companies create amazing products everyday but so many aren’t listening. They are demanding WHILE forgetting to build — it seems their audience may be caught in the wrong tier. Certainly, there are many novice mistakes, but I’m not quite certain if any venture capitalist feel comfortable in admitting ‘poor business decisions’ — this goes for
other investors too. The problem is also clear, Everyone Wants To Be a Unicorn created ex nihilo, then scorn the unicorn when they have not (identified the tools) become the unicorn (determined by industry). The glorified ‘business model’ of turning unicorn overnight is what’s eating the startup world, it’s not the technology bubble itself.
“Shortcuts get you in trouble… some mature investors with sustainable principles apply suitable methods within certain suitable market climates…”
To escape deadly weakness focus more on competitive value: a balance flow of innovation *risk and increase feasible profitable impacts to apply suitable methods within certain market climates.
While unicorn status does not occur overnight, it would be most advantageous to select pieces of the unicorn in creating economies. Select pieces which will eliminate the shortcut process — ‘methods’ which will dominate the flow, and force modification to the business model. Instead, quite copy pasting to compete with oligarchs.
Greed does not see where these economies already exist — this is not an informed intelligence, neither is it skill, innovation, or value of scale.
Sticking with a plan begins with clear investment principles: 1) Identify the Problem Statement (what’s happening in the world?) 2) Value Proposition Segmentation 3) Getting comfortable with Experimentation 4) Intuition is good, BUT! (R&D) 5) Cost, Organization, Relationships and Profits.
Number 5 is CORP
Many times a strategy will not work because of the way it’s positioned; if it is the final step when it should be the first step, this is a different strategy. Finding value proposition with customers, products, competitors, and stakeholders shouldn’t be difficult.
A modification is well deserved, and a greater understanding of behavioral economics, and overall human relationships relative to the global economic spectrum would serve as the greater good for a bit of everyone.
We live in a world were value is defined by speed at our fingertips… customization, quality customer service, feedback, and profitability. Finding value proposition through scale should no longer just be optional – it needs to be a requirement.
There are several channels within the business corporation matrix that can benefit products and services from start-ups in this ever so changing, social, emerging, and digitally connected integrative asset world – allowing enormous growth, ROA, Private Public Partnerships (P3) “why private companies answer the demand,” network share, overall global network and financial scaling opportunities.