andrew.freyman@nokia.com wrote:
>
> It seems you still doubt whether profit motivates (I think you said Drucker
> postulated fear of loss was the greater motivator). However, when it comes
> to economic sustainability of new enterprises (as opposed to old monopolies
> and oligopolies) and more importantly their ability to grow larger, profit
> is essential to allow future investment. I think this is what iMode was
> supposed to be all about: enabling new businesses and Japanese leadership
> to be exported to the world...
> 1. If the company profits, it can invest to grow its current business and
> build new business
> 2. If the company has healthy profit outlooks, even if it does not have
> money to invest now, it can get outside investors to support its efforts.
> 3. If the company invests wisely, it will grow: hire more employees,
> invest in more plant, produce more product at lower prices, and thereby have
> a very positive effect on the economy.
>
> No profits, and neither one nor two are possible in most cases. Moreover,
> profits/investment/individual corporations growth have a multiplier effect
> throughout the economy.
>
> In contrast, in closed or monopoly or oligopoly-like situations, resources
> do not go where they are necessarily most productive, but they go to areas
> that will protect the position of the monopoly or oligopoly. This keeps a
> lot of people busy, to keep their loyalty to the system and to keep costs
> high to incent govt NOT to break up monopoly/oligopoly, but not does not
> necessarily lead to the most productive use of resources.
>
> This brings us back to cMode, which would seem like a great example. It
> keeps a lot of people busy. I am sure alot of money was spent to keep the
> various players happy. However, in the end of the day, the system does not
> reduce costs nor increase productivity.
Interesting. What could have been the motive for Coca-Cola to initiate and
drive Cmode (the trademark Cmode is owned by Coca-Cola - not by DoCoMo)?
Assuming here that Coca-Cola is driven by Wallstreet to keep profitability
high on the list of priorities, and Pepsi, Virgin-Cola, Pocari-Sweat and
others ensure Coca-Cola does not become a lazy monopoly/oligopoly?
Gerhard Fasol
http://www.eurotechnology.com/
[excessive quoting removed by moderator]
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Received on Wed Sep 19 03:32:43 2001