In life, sometimes it’s the simple things that count, despite modern technology. In the next few months, I will be able to see 3-4 of my books published. Traditionally, most large publishers take between 12 and 18 months to publish their books. As a freelance publisher, I learned that speeding products to market is a good way to beat a big competitor.
In fact, my success relates to a simple website called Elance.com, an independent website that allows clients to apply for work from a variety of outsourcing services, including programmers, designers, office support, translators, marketers, researchers and many other disciplines.
Elance.com allows a company to post a job offer and invites freelancers who believe they have the necessary skills for the job to submit an offer. The company charges a $ 10 fee to each company to post a job and also takes a small portion of what is paid to contractors. Through this website, I have met some of the most talented people in the world. For these services, it is a buyer’s market. Some people would say that it’s about buying cheap labor to get profitability.
In this scenario, developed countries seem to be exploiting underdeveloped countries. This is not always true. I have paid more in the past for the best talent. That said, potential employers see a website that attracts more than 500,000 talented freelancers. For the freelancer, there is an opportunity to bid on 48,000 jobs worth $ 480,000. [1] Therefore, a differentiation strategy can defeat a low-cost strategy on a global playing field.
Technology must be a management tool that is used strategically. Clayton Christensen, author of The innovator’s dilemma, provides a framework for understanding the interrelationship between technological change and business success. Christensen demonstrates how disruptive small technologies have overtaken successful companies.
The cell phone, which undermines the profitability of established communication networks like AT&T, further shows the impacts of disruptive technology. Unfortunately, more executives are unwilling to think strategically due to the ire of their investors and financial experts.
For example, Amazon’s revenue grew in 2012, but details were lacking. Amazon.com’s revenue increased to $ 17.4 billion (35% increase) in the fourth quarter. However, it did not live up to Wall Street’s predictions. According to VentureBeat, Amazon sold up to 6 million Kindle Fires and its old tablet prototype.
Given this reality, the Fire would be ahead of the Android tablets from Samsung and Motorola, so it would only be surpassed by the iPad from Apple. Analysts were concerned that the $ 199 Fire would not make a profit. Additionally, Amazon.com is investing capital in clouding technology.
Maximizing Fire’s earnings as an industry-leading tablet is a short-term strategy. However, CEO Jeff Bezos appears to have disappointed Wall Street with a long-term perspective rather than sacrificing shareholders with short-term gains.
Innovators take note of disruptive changes as positive market turmoil. John Gamble and Arthur Thompson, authors of Fundamentals of strategic managementHe explains, “Understanding the nature of competitively important resources enables managers to identify resources or capabilities that need to be further developed to play an important role in future business strategies.” Therefore, organizations that do not understand the importance of achieving sustainable growth by being more efficient will not be successful in the long term.
© 2013 by Daryl D. Green
References:
“Amazon Revenues Growing, But Details Are Missing” by Charles Babcock
Elance.com website (2012)
Fundamentals of strategic management by John Gamble and Arthur Thompson
Joshkotsay.com (2011). Retrieved January 10, 2012 from http://joshkotsay.com/outsourcing/elance-review
The innovator’s dilemma by Clayton Christensen
[1] Elance.com