Some years ago there was a spectacular explosion of the Internet bubble, where the start-up companies were no longer attracts the largest, but the ideas unproven billion dollars in financing venture capital and start their business on the Internet.
Billions of dollars have been spent to rent a lot of people turn rent large rooms, office and IT equipment leasing heavy in a few places around the world. Hundreds of millions of dollars have been spent more on heavyAdvertising in the media to the public to draw their websites.
Not a day passed when this is not dot com company "or feel com, dot cry they were" for your attention to you, you can benefit from their products or services. If you're lucky, have been involved in the frenzy , are very clearly remember what was that feeling. Everywhere I looked, I saw ads for a dot com. Some were very nice to look at, changing very catchyLines.
Unfortunately, most Which business models of enterprises, especially the hype around the Internet, unproven ideas big and is based on the "First Mover Advantage" - with the ultimate reward for Their founders and supporters, the lists of enterprises bag.
Multi-millionaires overnight by internet, that listed companies which has excited the venture capitalists and entrepreneurs even more, which led to yet more billions suspendedInternet pumped dollars into new projects. Why does it seem then that the trip was to millionairedom only a few months away, would take years, rather than as usual.
Venture capitalists are looking for a good management team with a great idea that the Internet has been involved in a fund so. Because the Internet was very new then you will not know if these ideas would be great, gold. But the game was not to be seen whether- The game was the dot-com companies as soon as possible at any price list and out of range. Of course it was only a matter of time until things became clear to all parties, with very painful consequences.
Here are the lessons in this fiasco that went directly into the marketing books of shame.
No business model that was not right, was profitable in the long run generate any hype for them never survived. In other words, if aFirms may not have enough money to cover the costs of the transaction, no amount of hype or the application of the "First Mover Advantage" That will be offset to change that.
Now is the First Mover Advantage is a concept that when you see be the first time anywhere with your product or service on the Internet (although you can not be the first to do so, Said to be only the first, does not look like one), there will be a great advantage over all the company of your competitors to win thecame on the scene sooner or later, they were there, but only themselves highly publicized, after it came on the scene.
In its first, you get more customers and you will the number of sales to make, and do the preferred choice for your prospects, operations, because it is always easier to remember the first company to offer a particular product or service .
This belief in the concept First Mover Advantage caused hundreds ofMillion dollars to spend on big media campaigns very quickly by Internet companies during the dot com boom. Advertisements were everywhere - including on the Internet, on TV, radio, newspapers, bus panels, billboards, and almost every job could be for publicity to keep thinking. They advertised during prime time in the media (like during the Super Bowl, for example), the date of an announcement could cost millions of dollars.
Most of these companies werewound in the shortest time possible, as it became clear that burned more money in operations and advertising than they deserve, were in search of the "First Mover Advantage".
The end result?
The only people who are filthy rich, are advertisers (if they were paid before their customers failed), and the lucky few who managed their company before the bubble burst in this list.
Now you may think that the "First Mover Advantage"Concept is invalid.
But it would be wrong.
The problem is not with this concept, but the fact that their business models were not profitable in the first place. Nobody had done their business, as it did before the Internet - so that nobody would have known how it would go. The campaign was inspired by seemingly immeasurable wealth of hyper-growth in the Internet too tempting for all the good arguments have been ignored or neglected and business practicesfor the "First Mover Advantage".
But then look at AirAsia.
Had already made a profit in its first year of operation. This is even more remarkable when you consider that to be the airline AirAsia, which has taken the position, the operating company had a debt of $ 10,000,000 before being bought!
The model of low-cost carrier is not a "new and unproven model. It 'was already works very well in Europe, as Ryanair and easyJet - andAirAsia's founder saw a huge opportunity in Asia operate virgin for the same type of carrier, since none of them were in Asia (not yet) the obstacles to their expansion in this region.
Sun AirAsia has taken a proven model for other Countries for the travel industry that almost everywhere is the same to the needs and Applied to a different geographic market, with some adjustments where necessary. Armed with a business model thatemphasizes cost savings, both in what it offers to its customers and its operation, then it first-mover Advantage created the best that can with his very simple and effective slogan that says, "now all can fly.
I saw AirAsia of billboards in certain strategic locations (such as bus stops) when I was in Macau and Hong Kong recently (and yes, I flew AirAsia to Macau and then took a hovercraft in Hong Kong). It announced its low-regularly in the media(Especially newspapers). Its CEO is media interviews and other special events regularly story of a remarkable achievement and AirAsia growth trend, the average lap and say everything was their story, a sexy and successful.
And 'the pride of Malaysia alongside world-class airline of the other country, MAS (Malaysia Airlines). In addition, moving quickly to take a walk Thai and in neighboring countries through the creation of partnerships with them in the form ofAirAsia and Indonesia AirAsia. It 's time to fly in parts of China.
But what about its competitors? And 'Singapore's Tiger Airways, Jetstar Asia Australia (owned by Qantas), Thailand, Nok Air and 1-2-Go and the Philippines, Cebu Pacific, numerous players in India called Kingfisher, SpiceJet, Indigo, Air India Express Air Deccan, Premier Air, Air One, Air Dravida and Jagson Airlines, Oasis Hong Kong Airlines Hong Kong, Macau and Viva Macaufor many other companies.
The largest Asian market is definitely room for more than one player in the business of low-cost carrier. While AirAsia has done very well so far, is the first Mover Advantage clearly the most important business strategy that led to important partnerships with other countries. The key to the First Mover Advantage is not the first, but you can see, the first - and in this sense, we can safely assume that not all airlines get on 'as AirAsiadoes.
The most important lessons to be learned:
Before you have a proven business model in another place that your prospects are, but with little or no competition. You can discover the business models in the Internet world with my mini-encyclopedia of doing good, see] http://www.internetbizmodels.com/index4.htm [
But since you are on the Internet, you really have only one position, to use proven business models for your own niche. AInternet business model for a niche (like "fitness niche) will work for another (such as" Romance "or" niche "Dog Lovers) work.
According to the first new engine advantage
You can not pay for advertising, if you know how to use free advertising techniques to discover your business has seen, have the world in various media, are performed. AirAsia founder used to give interviews to the media that tell much more, they work.You can get full coverage in the millions, it costs nothing to give except their time in interviews. You can do the same thing as I seem to happen to me several times in the past - even on CNN News!
There are of course many other factors such as the "First Mover Advantage" in the success story of AirAsia now far, despite strong competition, but I leave that for another day.
Copyright © Sen Ze
Do you know why a lawyergive up her career to be an Internet entrepreneur? To find out, go to http://www.internetbizmodels.com
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