jerryking + microproducers   12

Vertical media mergers are just so 19th century | Financial Times
June 21, 2018 | Financial Times | Anne-Marie Slaughter.

Media companies are falling over themselves to merge with one another right now. AT&T took the US to court over the right to buy TimeWarner, and Comcast and Disney are engaged in a bidding war for some of 21st Century Fox. Big looks set to get bigger. Yet according to our best thinkers on the future of capitalism, the corporate titans driving these decisions are heading firmly backward.

AT&T and Comcast are communications companies that are attempting to go vertical and control every layer of a media empire from underground cables to the creation of content....Andrew Carnegie was determined to own coal mines and railroads as well as steel mills. The goal was control from top to bottom, closed access and economies of scale.

But that is old-fashioned thinking, according to the current crop of books on the dramatic economic changes being wreaked in the next phase of the information age. They argue that vertical integration amounts to building silos in an era that will be dominated by platforms — owning in an era of renting — and looking for mass markets when customers want individualized products.

Hemant Taneja makes a strong case for “customised microproduction and finely targeted marketing” in his book Unscaled. An investor for the Boston-based firm General Catalyst, he does not question the value of having many customers rather than few. But he argues that fast-growing companies in sectors ranging from energy to healthcare and education are succeeding because they customise their goods and services to a “market of one”.

The rise of artificial intelligence and cloud computing allows these companies to “rent scale”, he writes. Small, nimble companies can now out-compete big ones in specific markets, adding scale as they need to.....Netflix’s market value exceeded that of Comcast back in May and it is now bigger than Disney. Its global headcount is 5,500, nearly one-fifth of Time Warner’s and one-50th of AT&T’s. Netflix does not have the size to build as large in-house AI capabilities. But a quick search for “media data analytics” reveals a score of companies. Why pay for that capability when you can rent it
Andrew_Carnegie  Anne-Marie_Slaughter  artificial_intelligence  books  cloud_computing  end_of_ownership  entertainment_industry  Netflix  platforms  scaling  size  vertical_integration  AT&T  Comcast  customization  Disney  gazelles  nimbleness  mass_media  personalization  mergers_&_acquisitions  21st_Century_Fox  Time_Warner  19th_century  microproducers  target_marketing  unscalability  silo_mentality 
june 2018 by jerryking
Small Factories Emerge as a Weapon in the Fight Against Poverty
OCT. 28, 2016 | The New York Times | By NELSON D. SCHWARTZ.

... small manufacturers like Marlin are vital if the United States is to narrow the nation’s class divide and build a society that offers greater opportunities for everyone — rich and poor, black and white, high school graduates and Ph.D.s.

“The closing of factories has taken the rungs out of the ladder for reaching the middle class in urban areas,” ....“Manufacturing jobs involve a skill base that you develop over time, and that fortifies your negotiating strength,” Mr. Johnson said. But in lower-skilled jobs, the competition is with someone who will do the same work for less. “The marketplace doesn’t give you any leverage,” he said.

Hope for Troubled Cities

Today, smaller plants are particularly important to job creation in factory work, said Scott Paul, president of the Alliance for American Manufacturing. “Megafactories are the exception today,” Mr. Paul said. “Small manufacturing is holding its own — and you are seeing some interesting developments in urban centers.”....As the sociologist William Julius Wilson has written in his classic studies, “The Truly Disadvantaged” and “When Work Disappears,” the exodus of factories from high-cost, union-dominated cities to cheaper, less union-friendly locales in the South and West in the 1960s and 1970s played a major role in the breakdown of urban cores.

“The trends among non-college-educated, white Americans today look like a lot like the trends among black Americans in the 1970s that so worried policy makers and social scientists,” said David Autor, a professor of economics at M.I.T., who researches the connections among trade, labor and employment. “You see it in the falling labor force participation, the decline of traditional family structure, crime and poverty. It’s all there.”...
African-Americans  automation  Baltimore  blue-collar  deindustrialization  equality_of_opportunity  exodus  manufacturers  micro-factories  microproducers  poverty  robotics  Rust_Belt  tradespeople  urban  value_added  whites 
october 2016 by jerryking
Makers and Breakers - NYTimes.com
NOV. 8, 2014 | NYT | Thomas L. Friedman.

This is a great time to be a maker, an innovator, a starter-upper. Thanks to the Internet, you can raise capital, sell goods or services and discover collaborators and customers globally more easily than ever. This is a great time to make things. But it is also a great time to break things, thanks to the Internet. If you want to break something or someone, or break into somewhere that is encrypted, and collaborate with other bad guys, you can recruit and operate today with less money, greater ease and greater reach than ever before. This is a great time to be a breaker. That’s why the balance of power between makers and breakers will shape our world every bit as much as the one between America, Russia and China.
Tom_Friedman  entrepreneurship  hackers  Cleveland  innovation  start_ups  immigrants  rogue_actors  supply_chains  globalization  lean  small_business  microproducers  Israeli 
november 2014 by jerryking
Big Changes Drive Small Carpet Firm - WSJ.com
October 30, 2006 | WSJ | By PHRED DVORAK
Theory & Practice
Big Changes Drive Small Carpet Firm
Hong Kong's Tai Ping Sets Global Growth on Overhaul In Management, Marketing

The small Hong Kong carpet maker hired an American chief executive who had never been to Asia and installed him in New York. It revamped its executive team, centralized marketing and acquired a high-end carpet maker in the U.S...."We're trying to create a minimultinational," says director John Ying, who helped push Tai Ping in its new direction.... small companies can -- and sometimes must -- globalize as much as big ones....
globalization  CEOs  Hong_Kong  small_business  howto  carpets  multinationals  microproducers  tips  marketing  strategy  management  turnarounds  metrics  managing_change 
february 2013 by jerryking
Making it in the new industrial revolution
Aug. 29, 2012 | The Financial Times | by Luke Johnson.
Two new books make this point: first, the Financial Times's Peter Marsh in his excellent book The New Industrial Revolution ; and second, Chris Anderson, of The Long Tail fame, in his new title, Makers . They argue that mass production is giving way to customisation, combined with localism, and the emergence of "micro-multinationals".

Digital manufacturing employs computers and a process called stereolithography to make products using layers of either powdered or molten plastic or metal, in what is described as "additive manufacturing". ...whether it is Apple iPhones or Rolls-Royce Trent aero engines, the real profit is not made in the basic assembly of goods. The margins are in servicing, brands, design and after-sales.

Manufacturing contributes to an economy in many ways. As Andrew Liveris, chief executive of Dow Chemical, argues in his book Make It In America , it creates more added value pro rata than other activities, and is much more likely to generate exports to help offset trade deficits. Moreover, research and development tends to take place alongside manufacturing centres, which foster clusters of sub-contractors. It is no coincidence that Germany, Europe's manufacturing powerhouse, has weathered the credit crisis so well compared to other EU nations.

Since the downturn started, many politicians in the developed world have insisted that societies move away from financial capitalism and back towards the real business of making things. If this policy is to succeed, it cannot be the usual formula of enticing global public companies to build multibillion-dollar plants. It must be about education, entrepreneurship and exploiting new equipment on a more bespoke scale. Incremental jobs in manufacturing can come from new, niche entrants using innovations in technology to help make them more of a match for the big incumbents.
manufacturers  Luke_Johnson  3-D  books  DIY  microproducers  Industrial_Revolution  developed_countries  margins  services  brands  design  after-sales_service  Apple  Rolls-Royce  developing_countries 
august 2012 by jerryking
The Global Entrepreneur
December 2008 | HBR | by Daniel J. Isenberg

* More and more start-ups are being born global.
* By tapping resources or serving customers across nations, entrepreneurs can take on larger rivals, chase global opportunities, and use distance to create new products or services.
* Distances, differences in cultural contexts, and paucity of resources are the main challenges new ventures face.
* Successful entrepreneurs are clear in their purpose, strike alliances from positions of weakness, are able to manage global supply chains, and can establish multinational organizations from the outset.
HBR  start_ups  small_business  entrepreneur  internationally_minded  supply_chains  new_products  globalization  Diaspora  networks  microproducers  DanieI_Isenberg 
august 2012 by jerryking
Companies close to home need your help
Nov. 2, 2011 | The Financial Times p12.| Luke Johnson.

Two recent books, independently published on either side of the Atlantic, have each drawn parallels between the "slow food" movement and the idea of investing locally. The slow food concept was pioneered in Italy in 1986, to champion small-scale producers and regional ingredients, as a backlash against global fast-food operators such as McDonald's. Now this philosophy is being extended to the financial sector.

The British title is Slow Finance: why investment miles matter by Gervais Williams,
The US book is Locavesting: the revolution in local investing and how to profit from it , by Amy Cortese.

the City of London is largely failing as a provider of capital for British business. The new-issue market for domestic companies has almost disappeared in recent years - all the activity is in trading second-hand shares and floating overseas companies like mining concerns from Africa or Russia. So if mainstream investing institutions such as pension funds are not backing British enterprise, then individuals should look to channel their savings directly into local ventures. For just as a society that won't reproduce commits a form of suicide, so if we fail to invest in our own industries, then we face inevitable economic decline.
local  locavore  investing  books  crowd_funding  Luke_Johnson  microproducers  slow_food  backlash  investors  economic_decline  London  small-scale  finance  funding  fin-tech  decline 
november 2011 by jerryking
Op-Ed Columnist - Just Doing It - NYTimes.com
April 17, 2010 | New York Times | By THOMAS L. FRIEDMAN.
EndoStim was inspired by Cuban and Indian immigrants to America and
funded by St. Louis venture capitalists. Its prototype is being
manufactured in Uruguay, with the help of Israeli engineers and constant
feedback from doctors in India and Chile. Oh, and the C.E.O. is a South
African, who was educated at the Sorbonne, but lives in Missouri and
California, and his head office is basically a BlackBerry....Chris
Anderson of Wired Magazine pointed this out in a smart essay in
February’s issue, entitled “Atoms Are the New Bits.”
innovation  Tom_Friedman  medical_devices  start_ups  entrepreneurship  Chris_Anderson  Uruguay  venture_capital  vc  immigrants  supply_chains  globalization  lean  small_business  microproducers  cosmopolitan  atoms_&_bits 
april 2010 by jerryking

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