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    Future of tomorrows’ economy: incentives for business  

    The future’s economic development will be based on a reduced-to-minimum distance between the supply-demand sides of the production chain. Another change is a shift from economic ownership categories to a „user-ship“ one. Business in the Baltics has to see the future trends and accommodate to changes…

    Traditional economies’ structures are challenged on two fronts: digital process and the so-called new thinking in supply-demand chain.

    Digitalization process

    Social-economic digitalization process has changed already much in the producer-consumer’s relationship: e.g. music and films are already mainly downloaded from the net. Besides, and it’s more important, active global web net has changed the basics of business activity. Not least, the most traditional mantras in trade and commerce, so-called „4 Ps“: price, product, placement and promotion.

    Since 1960s, these four „golden key words“ designed a successful marketing strategy and campaign for production and servicing. All business schools around the world have taught students for half a century that main attention is to be given to the „4 Ps“. Not any more…

    Thus, advertising has already moved closer to consumers; it is just on the iPhone’s screen. The net created a new transparency, i.e. sales channels on web make physical placement irrelevant, as most goods could be found in the internet.

    And so it is for prices: consumers can find the cheapest goods themselves; web-communication channels make it easier to get the right information on the good or service with the click of a PC’s button making traditional advertising and/or promotion irrelevant.

    Hence, the only „P“ is left, i.e. that of the product itself: it is the only mantra in which companies differentiate. Experts argue that there is no need for a separate marketing division in a company. Instead, there should be a team of „creative thinkers“, who are able to „cross-sector“ the complete productivity chain.

    From an owner to a user: changing supply-demand paradigm

    The background of old-fashioned „producer-consumer“ dilemma is challenged: a new term has appeared –„prosumer“. It is about a „partial“ or sharing economy stile.

    The concept’s origin comes from Lisa Gansky who called it a „mesh“ in the book published in the fall of 2010 *). A „mesh business“ is the one that takes advantage of a modern web-user’s opportunities and sharing principles.

    Examples abandon: car and bike sharing (with web companies involved), Netlflix, tool rentals, clothes sharing (or trading), etc. So-to-say, anything that is cheaper to rent than buy while taking advantage of technology, social media and convenience.

    The concept gives a glimpse in the future of a new prosumer’s economy. However, it is not that easy to say how quickly people in different cultures will get used to a re-usable sharing world of products. But, no doubt, there are good reasons to believe that the idea is quite rational.

    *) The Mesh. Why the Future of Business is Sharing, by Lisa Gansky, 2010; in: https://meshing.it/book

    Sharing is becoming trendy… products, policies, services, partnerships and models in which ‘access’ to goods, services and talent triumphs over the ownership of them.

    Eugene Eteris baltic-course.com

    Articles »  Future of tomorrows’ economy: incentives for business »  Views: 16703   Diplomatic Club

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