Everyone has heard the story of David and Goliath. We’ve all seen the analogy applied to describe businesses, too. Where one or two massive corporations “the Goliaths” will dominate a market niche, small businesses operating in the same market will represent the “Davids”.
The status quo right now is that times are changing rapidly and this idea of David and Goliath is reversing with it. Technology is the basic enabler. That means a million “Davids” are now actually the new “Goliath”.
You should consider that most of this has happened in the past 10 years:
- Napster was a big issue in 2001, but it was the Gnutella network that came after it that really hit the music industry hard.
- In 2003, Facebook didn’t exist. Twitter wouldn’t appear for another 3 years.
- The pinnacle of smartphones was the “Windows Mobile 2003″ platform for Pocket PC running on a phone.
- Outside of Japan, App stores didn’t really exist ten years ago.
- iTunes store was just opening in 2003.
As you can see, we’ve come a long way in the time since the “dot com bust.” However, the biggest changes are still to come.
Consider something like cable TV. People here and there are “cutting the cord,” but these people are still in the minority. The bulk of people are still paying their $80 a month for cable bundles, which is really a product of the baby boomers a few decades ago. These people aren’t really the problem for the goliaths. You might think that the cord cutting revolution is well underway, but this is really just the tip of the iceberg.
The obvious question to ask at this point is “where are the other 4/5ths of the iceberg?”
Take a kid who is going to university right now. They’re likely grabbing all the shows they want using an $8/month Netflix subscription or watching it on an iPad through iTunes. Do you think that when they eventually buy a home, that they’ll suddenly start paying $80/month for cable like their parents do? Do you think their friends will start paying for something that they are accustomed to getting cheaper?
How about buying cars? For a 16 year old, cars have perpetually been on “Employee Pricing” since they were 11 years old and started watching adult TV as the economy crashed.
How about going to the movies? Two people having a night out at the movies, with a coke and popcorn each, will run you close to $40 these days. You can rent a blockbuster movie on iTunes for $5.99 watch it with friends and not have the annoying adverts.
People and businesses seem to think that the revolution is happening in the 25+ age group, but this is really not the case.
The actions of the next generation are a result of the generation before them and the technologies they bestowed on those that come next. The current generation has rebelled against the baby-boomer way of doing things, and it’s the kids (who haven’t known any different) that are looking at the technological choices before them. They’re clearly taking a different route than everyone else that came before them.
It used to be said that “if your job could be outsourced, you need to worry”. Now you need to add “If the under 25s are ignoring you because of technology, you need to worry”.
Contact us for more information! We’d love to help!