Porter’s Five Forces Model And Internet Competition

According to Porter’s Five Forces Model, in my opinion, competition has increased overall as a result of the internet and e-Commerce. The internet and IT has made it possible to both focus on the top and bottom lines and market share is expanded and costs are cut. Many products and services exist just online, major companies have gone online to successfully augment the brick and mortar corporations, and the playing field is all the way to edges of cyberspace, wherever that is. We will further evaluate this stepping through all five forces.

Buyer power is higher when buyers have more choices. Businesses are forced to add value to their products and services to get loyalty. Many loyalty programs include excellent services that customers demand on-line. Customers want to solve their problems and many times they are more successful on-line than on-phone. Also, we see internet savvy businesses springing up offering more valuable goods and services at lower costs. Now with the advent of eBay, many people are assuming roles as drop shippers. Individuals can have a thriving business selling goods of larger companies without having to carry inventory.

Supplier power is higher when buyers have fewer choices from whom to buy. As mentioned earlier, drop shipping has increased the amount of suppliers available. All an individual has to do is form and agreement to sell products for the company. The company takes care of all the logistics. The same is true of associates programs that Amazon.com and Google.com offer. Associates allow a webmaster to earn money by recommending products from others. This increases supplier offerings.

Threat of substitute products or services is high when there are many product alternatives. This is different than having many suppliers. Examples of alternatives are exchanging brand names, substituting credit card capabilities, and looking at better values from cheaper sources. The internet allows this with the “global economy”. I can substitute my product by purchasing from companies overseas where labor, services and products are cheaper, but of comparable quality.

Threat of new entrants is high when it is easy for new competition to enter the market. Well, what have we been talking about? Now, small operations can open shop with less than $10.00 per month and make a lot of money. As inventive as people are, there are always opportunities to do improve a product or service or just create and sell something new. Recently, many new entrants have made even more money authoring Ebooks that tell others how to do what they did. Rivalry among competitors is high when competition is more intense within industries.

On-line book stores and catalog companies are an excellent example. Amazon.com and Barnesandnoble.com are very competitive. However, there are many also smaller niche affiliate bookstores that when combined take a great deal of market share. They offer even more competition. However, both major bookstores have used IT to create value for their customers. These values include associates programs, ease of payment and shipping and many, many others.

The internet offers avenues of competition to existing companies and opportunities for start ups. Now businesses can enter the market on-line with few barriers to entry. Porter’s Five Forces Model can help demonstrate the attractiveness of starting your on-line business. A business person should use the model to identify competition, make a plan, and implement the process.

Understanding the Boundary Between Education and Literacy

The Title is self-explanatory. Let’s clear our concepts first;

What is Literacy?

Literacy is the ability to read, write and express ourselves. The key to literacy is reading development, a progression of skills that begins with the ability to understand spoken words and decode written words, and culminates in the deep understanding of text.

What is Education?

I define Education as the capability to use the ability to express ourselves. This is one line definition of education. Education is the application of literacy, not just the literacy.

A person can’t say that “I am educated because I know how to read, write and express myself.”

Coming to my point, Are we really getting educated or just literate? People pursuing great degrees are still left unemployed. Students with great minds and talents are unemployed and maximum number of unemployment can be seen in engineering. Why is this? The answer to all these questions is THEY ARE JUST LITERATE, NOT EDUCATED.

They lack skills because they just know to express themselves but they don’t know how to express, why to express and what to express. Education involves whole methodology of applying skills, to foster development and exploring new ideas.

Now, coming to India’s education system, I believe that India is focussing on its academics but not in proper manner. Children here are characterized on the basis of their grades, marks and how much they know, not on their talent, skills and how much they discover the undiscovered. The children who have knowledge are intelligent but the children who discover and explore knowledge are called to be wise and genius.

Taking an example, Albert Einstein found no profit and interest in knowing history and learning those dates, left one of the best schools by giving fake medical certificate of nervous breakdown and started discovering the undiscovered, exploring the unexplored and fostering the science and technology not for anyone else but for himself, for getting inner satisfaction and peace. He is one of the best scientists who brought a new look to the era of science.

The people in India who are extremely talented and skillful, leave the country for getting better jobs and opportunities in foreign cities. Why this happens? What is the reason? What makes people and talents of India to leave such a wonderful country? Is this because of outer fantasies, glories or fame? No, the answer is, India lacks in its education system which makes Indian talents to settle outside.

India is a democratic developing country. India is developing constantly in its academics but in wrong way. We are just getting LITERATE, not EDUCATED.

Leaving a question for you;

Are you just literate or educated?

The L Steps – 6 Steps of Real Estate Investing

Real estate investing in Miami real estate is now becoming popular again as there are many properties in foreclosure, short sale, bank reo's, and government foreclosures. With such an overwhelming inventory of homes available for sale a real estate investor must be able to determine which one to purchase. Investors must follow six steps in order to learn, understand and achieve Miami real estate investment success.

These are the six L steps to Miami real estate investing:

1. Location – Location, location, location is still the key of buying Miami real estate. Buying Miami real estate just because the price is low in a declining area is big mistake that should be avoided. Look for homes in an excellent location like, good schools, economic stable and growing neighborhoods, near shopping centers and malls, near bus stops and metro rails, near hospitals and restaurants. Sometimes it is better to pay a little more for a property in a good location than getting a bargain in a place where it is very hard to sell or rent the asset. Location is often overlooked in purchasing real estate as many investor think they can exceed a bad location if the price is low enough. Out of two homes that are exactly the same, the one in the best location will command a much higher sales price and rental income. Location is the number consideration when purchasing Miami South Florida real estate.

2. Long Term – Real estate investing is a long term proposition. Do not think you are going to be a millionaire over night. It takes years of hard work and dedication in order to succeed. Hold any property at least one year before selling it. Capital gain taxes will be greatly reduced. Consider renting the property for at two or three years. The rental income generated will help you to properly repair and renovate the property. Many investors purchased properties in the middle of real estate boom with no money down and no equity. These investors were thinking of flipping the houses fast and making a killing in the process. Many homes now in foreclosure are due to investors that were caught in the middle and now realize that real estate investing is very hard to time. Long term Miami real estate investing is the secret to a successful real estate career.

3. Lease Option – Never rent a property with a lease option to buy. Either sell or rent it straight out. A lease option is usually a disaster for both buyers and sellers. The tenant will demand a large discount of the rent to go towards the down payment and closing costs. The problem is that tenant will not buy the property at the end of the lease and the landlord / seller will have wasted a lot of money in rebates given to the tenant / buyer. Demand a 20% or 30% deposit from the tenant / buyer and a clause in the contract that if they default on the purchase they will lose the deposit. This technique will force the buyer / buyer to purchase the property or lose the deposit. The risk of losing the deposit will eliminate the tenant from taking advantage of the landlord by walking out of the contract after receiving a monthly rental discount.

4. Local – Buy real estate close to where you live. Do not buy real estate in another state or in another country. Keep real estate investing local. Buy in your own county and in your city. The more you know about the area where you are buying the better the decision will be. The investor should always be close to the investment property. The Miami real estate investor should inspect the property often to determine any repair, roof and other problems. The landlord must inspect the property every month when collecting the rent. Check for the number of tenants actually living in the property, check for damages and destruction of the property and overall condition of the place. The investor / landlord will not be able to inspect and determine the condition of the property if it is located far away. Keeping real estate local is an essential step in real estate investing.

5. Leverage – Most real estate books and seminars tell you to use other people's money when purchasing real estate. This technique is not the best and buyers should try to buy the property in cash if at all possible. Buying a house in cash will help you get a better deal and allow you to negotiate from a position of strength. A cash buyer will always have the upper hand in negotiating with banks, property owners, and other sellers. Cash buyers will not suffer and go into foreclosure if the market turns and they are unable to sell or rent the house right away. Like Dave Ramsey always says "cash is king and debt is dumb". Buying an investment property in cash is an excellent way to avoid Miami real estate investment errors.

6. Learn – Research the property and learn everything about it before you buy. A mistake in Miami real estate investing can be very costly. Usually you make your money when you buy not when you sell. Buying the property at the wrong price the wrong place and at the wrong time could be detrimental. One mistake could wipe you out and put you out of business before you start. Ask questions to the experts, real estate agents, appraisers, mortgage brokers, and other real estate investors. Learn, research, educate yourself in all aspects of real estate investing before you purchase the asset.

It is definitely a buyers market in Miami-Dade County. Miami real estate investors have more choices than ever before when it comes to real estate investing. Investors must follow the L steps, the 6 steps real estate investor guide to successful real estate investing in order to achieve their investment goals in the Miami real estate market.

Marketing Chocolate

Throughout history, chocolate has been marketed differently to different consumer types. Some companies like to show their customers that their chocolate has the most weight, by using digital scales and then showing what the price computing scales read on the actual package label. Yet, other companies prefer to create an upscale image, by making their products seem rich and indulgent. This article discusses the different ways to market chocolate.

1. Make a product that is meant for the everyday consumer. This type of chocolate is made for those who want an average chocolate bar. The packaging is usually very simple and the prices are the same or lower than the rest of the competition.

2. Create a rich and luxurious image for the product. This type of chocolate is set above the rest in price. It usually has gold packaging and has a look that is different from all of the competitors.

3. Organic products are becoming more and more popular, so making chocolate to appease this type of consumer is a newer marketing technique. In order for a chocolate to be organic, it must be approved by the USDA and some companies then go on to get certified organic by other more strict organizations.

4. Companies also want to reach out to the adventurous chocolate eater by using exotic ingredients in the chocolate. These types of chocolates usually have bold colors on the package label, to emphasize the exotic ingredients that are in the chocolate. Exotic ingredients may include, spices like cayenne pepper, or different fruits like passion fruit or mango.

5. Sugar free chocolate appeals to those who have diabetes or anyone who wants to reduce their sugar intake. The diet industry has really taken off in the past ten years and as such, so has the diet chocolate industry. People with diabetes or consumers who are watching their weight are able to eat chocolate that is made without sugar. This chocolate is usually made with artificial sweeteners and the packaging reflects this change. The wrapping and labeling on this kind of chocolate bar is usually lighter, to indicate that it is lighter in calories and sugar, therefore, making it a light chocolate bar.

6. Finally, there is marketing towards children, in which companies make a product that is fun with packaging that has bright colors. There are many chocolate producing companies whose target market is children. In order to attract children anywhere from two to sixteen, they make their labels appear bright and cheerful. These companies also make their companies seem fun and sometimes quirky to attract children to other products they may offer.

Chocolate has been a part of the everyday consumers’ lives for hundreds of years. It is only in the recent past that the consumer market for chocolate has been segmented into so many different components. The consumer market is also constantly changing, so it will be interesting to see what new markets come about in the next few decades and how the chocolate industry will deal with these future changes in the chocolate market.