On Tue 9/18/2001 9:29 PM drew.freyman@nokia.com
<mailto:drew.freyman@nokia.com> wrote
>> So, I would agree with your comments that the proprietary model works
very
>> well for Japanese carriers, and maybe even for the Japanese end user.
>> However, it may not be so good for the Japanese mobile technologies
>> ecosystem, or the economy as a whole.
Interesting point, Drew,
Thinking in terms of the economy as a whole, then…
Does it matter whether all (or even most) companies along the food chain
are making a profit for the model to be beneficial to the economy ?
I think not.
The individual profits of a few corporations has rather little influence
whereas the common measure of economic health is based primarily on
spending.
Spending or the transfer of funds from one entity to another is
simulative for the economy as a whole.
Even if certain companies in the chain are not profitable they will have
suppliers who have sub-contractors who have employees, etc etc. Mostly
the money ends up in some persons hands (mostly in the hands of salaried
employees actually) and they in turn spend it on their daughters 40,000
yen mobile phone bill.
So, apart from the (relatively few) shareholders of NEC who are likely
to be very selective spenders of their cash anyway (statistically much
more likely to re-invest any dividends/capital gains than a blue collar
worker) it doesn’t matter whether NEC are making a profit or not.
Thinking in those terms, the ecosystem spreads way beyond the companies
that are directly part of the chain and includes everything down to the
farmer that grows the rice for the bento shop that makes the lunch for
the factory worker who works at the factory that makes the carpet for
the advertising company that makes the TV commercials for the car
company that supplies trucks to the company that makes the little
speaker in your NEC keitai. Surely someone along the line benefits,
even if the speaker maker is being screwed down to unworkable margins by
NEC and can7t make a profit.
Regards,
David Davies
david@intadev.com <mailto:david@intadev.com>
PS. Of course your comments are purely as a forum member, only a dig.
PPS. I hear Bill Gates secretly contributes totally objective postings
on slashdot in his spare time. ;-)
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Received on Tue Sep 18 16:09:17 2001