Author Topic: How Internet Disrupted Global Business Models ?  (Read 39 times)

wiredlife

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How Internet Disrupted Global Business Models ?
« on: June 30, 2017, 10:46:28 AM »
Technology and the Internet of Things are eroding pricing of nearly everything to zero, yielding a world of zero marginal costs and one of almost unlimited scale. While destruction started in retail and services, it is now impacting manufacturing supply chains. At the same time, attempts to keep conventional private sectors alive (via aggressive financialization) leads to ‘zombie companies’ and persistence of overcapacity.

In our view, these two forces (technology and over financialization) eradicate corporate pricing power and destroy conventional labour markets, unleashing deflationary pressures while depressing productivity. It also explains a spate of M&A and lack of conventional fixed-asset investment.