Posted by: prataap | March 9, 2008

VISION: POLARIZATION


VISION: POLARIZATION

Polarization of various forms is upon us:  great wealth and scarcity, fast and slow paced life options, info overload and info indigestion.  Based on currently emerging trends, these forms of polarization of society: weather, behavior, work and play, will create new ideas, opportunities for businesses, choices for people and clues to how society may evolve in the 21st century.  

This will require major shifts in thinking. In the business world for example, the current trend of mega mergers & buyouts will matter less. Think of the hoopla that was created by the thought of AOL merging with Time Warner. And now, the question is: Microsoft+Yahoo= Google ? Or United + Continental + British < Delta + Northwest + AirFrance ? In the long run these market consolidations will hardly matter. Size is not where it is at. Who would have thought Motorola would be gone by 2008?

The new paradigm will be short term alliances that create whole new markets and then capture large shares of it by being first.  This will be different from the 20th century business strategies of merger and buyout with the primary focus on size and greater market share. The new trend will be focused on short term alliances creating new products and services through their combined assets and strengths. When the market peaks, the alliance dissolves, and a whole new one is created with other partners.  The new world order has a very short shelf life. Strike while the iron is hot and then get out!

In the next 20 years, the size of companies will matter less than the synergistic alliances that they can create through partnerships that exploit technological innovations and the constantly shifting marketplace. Polarization causes a widening gap. Result: a vacuum for new opportunities. Ultimately, think in terms of  “polarization” as meaning, “new beginnings”.

The major shift is going to be away from capturing existing market share to creating new markets. And companies,products, and services that do not innovate around easing the life of its stressed out consumers/clients will die or be bought out.


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