"The secret of business is to know something that nobody else knows."
Explain what you think the above quotation means and discuss the extent to which you agree or disagree with it. Support your position with relevant reasons and/or examples from your own experience, observations, or reading.
Knowing information that others do not is certainly an advantage - whether or not it can determine the success of a business, however, is a complex one to analyze. On one hand, having a certain idea can give a business the upper hand because it allows the business to offer value that competitors cannot. On the other, there are many more aspects that determine whether a business will thrive. I believe that having unique information or insight is not enough to build a successful business.
Firstly, the information that a business has does not necessarily mean it will be successful. Coca-cola (Coke) is successful not because it has a unique flavor that no one can imitate, but because it has a strong brand and entered the market first. When Pepsi-Cola began to compete with Coca-cola, blind taste-test surveys suggested customers preferred the taste of Pepsi over Coke. However, despite Pepsi's own unique formula and cola blend, it was unable to outsell Coca-cola. Coke already had dominant market position. It was not until Pepsi attacked Coca-cola's demographic through marketing that Pepsi started to gain more market share.
Secondly, it can take a company years of funding through many periods of financial loss before it can become profitable. Without proper funding and investors who believe in the business, the business stands very little chance to become successful in the long run. Restaurants are a prime example, as they generally operate at a loss in the beginning before enough demand is generated for its food. The majority of restaurants do not survive the first few years because the owners cannot support the operational loss to keep the restaurant open.
Lastly, even if a company is lucky enough to have investors and reach success with its unique information and ideas, long term success is not guaranteed. If you asked a child today if they knew what Sega was, they likely would not be able to tell you. Sega was once a major competitor to Nintendo, a company that produces video gaming consoles. Sega pioneered many unique offerings to its customers back in the 1990's, offering 3D gaming experiences. However, as the video gaming industry evolved, it was slow to react and ultimately failed.
It takes more than knowing something that no one else knows -competition will drive markets to evolve - without strong marketing, appropriate funds, and the ability to adapt to demand trends, any business can fail regardless of the special information that they possess.
Note: I had an example, Segway, of a unique idea that was funded and marketable but never got off the ground. This would have been a counter example. I would have converted the Coke example into Pepsi's ability to imitate Coke's flavor and gain market share, and would have used Microsoft's Xbox360 vs. PS3 that even if you have a "better product" (PS3 has more sheer power as a machine), other factors such as unique game offerings (example of special information aka specific console only games) as support of it being related to business success.
Explain what you think the above quotation means and discuss the extent to which you agree or disagree with it. Support your position with relevant reasons and/or examples from your own experience, observations, or reading.
Knowing information that others do not is certainly an advantage - whether or not it can determine the success of a business, however, is a complex one to analyze. On one hand, having a certain idea can give a business the upper hand because it allows the business to offer value that competitors cannot. On the other, there are many more aspects that determine whether a business will thrive. I believe that having unique information or insight is not enough to build a successful business.
Firstly, the information that a business has does not necessarily mean it will be successful. Coca-cola (Coke) is successful not because it has a unique flavor that no one can imitate, but because it has a strong brand and entered the market first. When Pepsi-Cola began to compete with Coca-cola, blind taste-test surveys suggested customers preferred the taste of Pepsi over Coke. However, despite Pepsi's own unique formula and cola blend, it was unable to outsell Coca-cola. Coke already had dominant market position. It was not until Pepsi attacked Coca-cola's demographic through marketing that Pepsi started to gain more market share.
Secondly, it can take a company years of funding through many periods of financial loss before it can become profitable. Without proper funding and investors who believe in the business, the business stands very little chance to become successful in the long run. Restaurants are a prime example, as they generally operate at a loss in the beginning before enough demand is generated for its food. The majority of restaurants do not survive the first few years because the owners cannot support the operational loss to keep the restaurant open.
Lastly, even if a company is lucky enough to have investors and reach success with its unique information and ideas, long term success is not guaranteed. If you asked a child today if they knew what Sega was, they likely would not be able to tell you. Sega was once a major competitor to Nintendo, a company that produces video gaming consoles. Sega pioneered many unique offerings to its customers back in the 1990's, offering 3D gaming experiences. However, as the video gaming industry evolved, it was slow to react and ultimately failed.
It takes more than knowing something that no one else knows -competition will drive markets to evolve - without strong marketing, appropriate funds, and the ability to adapt to demand trends, any business can fail regardless of the special information that they possess.
Note: I had an example, Segway, of a unique idea that was funded and marketable but never got off the ground. This would have been a counter example. I would have converted the Coke example into Pepsi's ability to imitate Coke's flavor and gain market share, and would have used Microsoft's Xbox360 vs. PS3 that even if you have a "better product" (PS3 has more sheer power as a machine), other factors such as unique game offerings (example of special information aka specific console only games) as support of it being related to business success.
