Let's try to understand the world ! politics, economics and business
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The Amazing Power of Deflationary Economics for Startups

The Amazing Power of Deflationary Economics for Startups | Let's try to understand the world ! politics, economics and business | Scoop.it

"In the simplest form, new startups have a product that is INFERIOR to that offered by the competition but at a dramatically lower price with the seller opting for a very thin margin on their product.

Initially their only customers are people who can get by on the reduced functionality or perhaps don’t have the money to spend on the expensive product.

Often it turns out that the market is greatly expanded by having a lower price point new entrant. And over time the new entrant attracts enough business that, as depicted in the graph above, the quality of the product slowly increases over time.

The new entrant keeps margins low but suddenly has a lot of profits due to large volumes of business.

How does the incumbent respond? Not by dropping price & quality – they don’t have an advantage there. In stead they spend more money trying to innovate on product quality and call attention to the weaknesses of the new entrants product quality.

Often major customers defect en masse to the new entrant as they realize that the huge price premium is not justified by the product differentials."


Via Martin Gysler
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Entrepreneurs and Investment: Past, Present … Future?

Entrepreneurs and Investment: Past, Present … Future? | Let's try to understand the world ! politics, economics and business | Scoop.it

"Whenever economists discuss the “big picture”— where we’ve come from, where we’re going— someone is bound to bring up Joseph Schumpeter"

 

"Schumpeter called market competition "creative destruction," by which he meant the constant tendency of the market to eliminate unproductive entrepreneurs and to replace them with more productive ones. And it is this progressive process of improving economic conditions that is prevented by economic policy regimes, which aggressively discourage new private investment. "

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Thiel Foundation To New Crop Of College-Bound Grads: Don't Go | Fast Company

Thiel Foundation To New Crop Of College-Bound Grads: Don't Go | Fast Company | Let's try to understand the world ! politics, economics and business | Scoop.it
To overworked high school seniors anxiously filing college applications, we have some good news. You don’t have to go. To 19-year-old college students ripe with talent we have even better news: You can leave.
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A new model of microfinance for the very poor is spreading

A new model of microfinance for the very poor is spreading | Let's try to understand the world ! politics, economics and business | Scoop.it

"Most of the estimated 2 billion people who live on less than $2 a day do not have access to formal banks. Over the past 20 years, legions of microlenders have tried to extend financial services to them. But some communities—the poorest, the least densely populated and the most remote—are not attractive to traditional microlenders. And the poorest of the poor are often wary of racking up any kind of debt, even a small one. Some economists argue that what the poor really need, if they are to manage their cash better, is savings."

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Le protectionnisme, une arme utile… faute de mieux

si le protectionnisme - comme la police - est une arme dissuasive essentielle que les Etats doivent garder à portée de main, il n’est pas en soit une source de prospérité
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EM fund managers of 2011: Arab spring

EM fund managers of 2011: Arab spring | Let's try to understand the world ! politics, economics and business | Scoop.it

"By Lina Saigol:  After coming top among emerging market equity fund managers in 2011, executives at Tunisian financial services company MAC be forgiven a little boast.  Their shariah-complaint MAC al Houda beat the world's best in 2011 - and they expect another good result in 2012.

“The fund is expected to perform well next year also, given the expected recovery of the Tunisian economy,” says Salma Zammit, one of MAC’s senior investment analysts. With the new government aiming to modernise Tunisia and create in Tunis a hub for Islamic finance, it could be a matter of being in the right place at the right time for MAC."

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How Entrepreneurs with Social Vision Secured Venture Capital | Entrepreneur.com

How Entrepreneurs with Social Vision Secured Venture Capital | Entrepreneur.com | Let's try to understand the world ! politics, economics and business | Scoop.it
VCs help sharpen Warby Parker's focus on the eyeglass industry.

 

"Most glasses are marked up between 10 and 20 times what they cost to manufacture, and that just didn't make any sense to us," Blumenthal says. So they set out to refocus the industry.

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The Most Important Graphs of 2011

The Most Important Graphs of 2011 | Let's try to understand the world ! politics, economics and business | Scoop.it

“Despite repeated European Summits over the past eighteen months that were supposed to provide definitive resolutions to the European debt crisis and despite enormous IMF-EU bailout packages, government borrowing costs for the European periphery rose to unsustainable levels. More disconcerting yet, by mid-2011, a crisis that had embroiled the smaller countries like Greece, Ireland and Portugal, started knocking on the door of Italy and Spain, which is now calling the very survival of the Euro into question” -- Desmond Lachman, AEI

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Gold, God and forgiveness

Gold, God and forgiveness | Let's try to understand the world ! politics, economics and business | Scoop.it


"The prospect of an eternity of hellfire was particularly acute in Florence, since it was here that the foundations of modern banking were being laid. As it happened, Florence was also witnessing the first stirrings of an extraordinary flowering of the arts. Before long guilt-ridden bankers were commissioning great works of religious art in the hope that they might after death escape the damnation that the scriptures foretold. In this way were the birth of the international financial industry and that of the Renaissance intimately connected."

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"Progress includes Order, but Order does not include Progress." JS Mill

"Progress includes Order, but Order does not include Progress."  JS Mill | Let's try to understand the world ! politics, economics and business | Scoop.it

What if the original state was not only a theoretical past but the present of some countries ?

 

http://www.foreignpolicy.com/articles/2011/11/28/dead_thinker_of_the_year

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