Friday, August 17, 2007

The long tail and Italian economy...

Ever wondered why we don't hear about mega sized multinationals in Italy ! That is because there aren't many and as an economy, Italy has a disproportionate number of SMB's...

This model seems to be very promising for the future. Small companies are agile and efficient. They are usually exciting places to work at with a small family like feeling. They usually create their own niches and with a unique proposition reaching the target customer's is a smaller problem in the Google Economy...

This model also has the advantage of spreading wealth more evenly; which is evident from the large middle class across western Europe.

Is it the right model for India ? I think so and would like to know the views of the readers...

2 comments:

Hitesh Parashar said...

Sanjay:

Thanks for Blogging about this subject. It is one my favorites.

I would like to recommend a book titled - "The Small-Mart Revolution".

http://www.amazon.com/Small-Mart-Revolution-Businesses-Competition-Currents/dp/1576753867

This book talks about TINA (There Is No Alternative aka the Large Multinationals) and LOIS (Local Ownership Import Substitution). The model that might work in the future is a combination of both depending on which industry we are talking about.

PS: It was great to read your Blog. Good to see you in action again. I was an ardent silent learner of your project management practices and I really admire your leadership style.

Thanks!

- Hitesh (www.hiteshee.com)

Upendra Jariya said...

It requires lot of courage and wisdom to acquire such a business model. Google heads can think so because they are true researchers and expect the same from other Google employees. Also, they work on products; in an outsourcing industry, the paradigm is quite different.

In order to acquire such a business model, a product based organization with true democrat values is the first requirement.