"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
In the world of today, which is full of information and the competition is bigger than ever before, one would question whether it is better to come up with own ideas when starting the business or whether it is more effective to copy somebody else's business model. I will show that there are more benefits for coming up with own ideas and thus knowing something that nobody else knows.
The main reason for starting business with own ideas is that one have competitive advantage and thus increased demand for his products. For example, during the times when internet and mp3 downloading was becoming widespread, the Apple company came up with its iPod and iTunes. As similar products were not offer those days and there was demand for them, the Apple was very successful with this product. By offering something that nobody knew and targeting the hole in the market, Apple hit the secret of the business. As it is enforcing similar strategy in long term, the company is growing and its profits are rising as well.
Another reason for coming up with something that nobody knows is, that you can set up price with higher margins. Because of the fact, that nobody else offers similar product, you have the competitive advantage. For example Google came up with idea of making money on internet advertising. They were on of first succeeding in this business and they can therefore set up prices with high margins. As latest quarter results proved they are still on the cutting edge of business and their share price is soaring.
On the other hand, one could say, that you can make good money when you simply copy another ones business model. You don't have to think about new idea, but just wait when somebody invent new product and then make of copy of it. However, if you go with this strategy, you will probably not be the only one who would choose this strategy. There will be probably many others trying to copy successful product and therefore you will not be able to achieve significant margins due to increased competition. For example in todays' tablet market many companies are trying to copy iPad, the revolutionary product. As lot of big companies are trying to take a piece of the market and succeed with its own product there is not much space for setting high price. If high price was set, somebody else might come up with similar product with lower price.
Clearly, it is much better in business to know something that nobody else knows. If you are so lucky to have such benefit, there will be huge demand for your product and thus you will be able to set price with high margins for you.
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
In the world of today, which is full of information and the competition is bigger than ever before, one would question whether it is better to come up with own ideas when starting the business or whether it is more effective to copy somebody else's business model. I will show that there are more benefits for coming up with own ideas and thus knowing something that nobody else knows.
The main reason for starting business with own ideas is that one have competitive advantage and thus increased demand for his products. For example, during the times when internet and mp3 downloading was becoming widespread, the Apple company came up with its iPod and iTunes. As similar products were not offer those days and there was demand for them, the Apple was very successful with this product. By offering something that nobody knew and targeting the hole in the market, Apple hit the secret of the business. As it is enforcing similar strategy in long term, the company is growing and its profits are rising as well.
Another reason for coming up with something that nobody knows is, that you can set up price with higher margins. Because of the fact, that nobody else offers similar product, you have the competitive advantage. For example Google came up with idea of making money on internet advertising. They were on of first succeeding in this business and they can therefore set up prices with high margins. As latest quarter results proved they are still on the cutting edge of business and their share price is soaring.
On the other hand, one could say, that you can make good money when you simply copy another ones business model. You don't have to think about new idea, but just wait when somebody invent new product and then make of copy of it. However, if you go with this strategy, you will probably not be the only one who would choose this strategy. There will be probably many others trying to copy successful product and therefore you will not be able to achieve significant margins due to increased competition. For example in todays' tablet market many companies are trying to copy iPad, the revolutionary product. As lot of big companies are trying to take a piece of the market and succeed with its own product there is not much space for setting high price. If high price was set, somebody else might come up with similar product with lower price.
Clearly, it is much better in business to know something that nobody else knows. If you are so lucky to have such benefit, there will be huge demand for your product and thus you will be able to set price with high margins for you.
