Old Capitalist Culture vs. New Economy

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 The Old Capitalist Economy

Under a Traditional Capitalist Culture, we have seen companies rise and fall, and recently in increasing volatility.

In 2015, 26 companies dropped off the list Fortune 500 list, majority from the Oil, Gas and Mining sectors. Compared to the technology companies whom, continued their growth and currently occupy 10% of the list, the evidence is clear that technology is growing rapidly.

The “Solution”: Technological advancement and The Shared and Gig Economies

Why sell the product, when you can sell the use of that product. The shared economy realized the potential of not competing for finite resources but instead realizing the usage of these resources was suboptimal.

Community workplaces and shared spaces are also a great initiative that has come from the Sharing Economy. Where people with different expertise, assist one another and collaborate to actively develop new initiatives.

Incubator programs, and shared resources would be extremely difficult under the previous Capitalist system, where instead of resource consuming, these ventures are value creating. Space Mob, where workspaces are utilized by different professions in one space is a great venture where collaborative spaces, allow for businesses to build upon one another, and utilize synergies, such as those between logistics and e-commerce firms.

Opportunities and Threats

It is abundantly clear the pace of business and the success or failure cycles have quickened significantly. If you do not leverage the new technology economy and you are stubborn in believing the old systems are effective today, then your business will die out with your customers.

Leveraging the Gig and Shared economy, is essential as leveraging your pre-existing assets, and maximizing their capability for success by connecting two parties who can mutually benefit one another, is the only way to sustainable success.

Where the gig and shared economy has shown disruption to the marketplace, it has led to a better use of resources.

A combination of buying local, selling globally whilst diversifying and utilizing technology, would be the best solution, as this utilizes strengths in tailoring solutions and diversifies out risk.

Summary

The Capitalist Model is outdated and you must update your thinking when trying to attract and maintain your consumer base, as consumer’s behaviours towards experience and ownership, as well as search, have changed.

Looking deeper into how ineffective resource allocation has been in the past, shows us that collaboration and value creation are the best sources of increased social value.

The link below directs you to the White Paper exploring in depth these key topics and shows how companies have leveraged these economies for success, and what lessons can be learned to apply to your business from making the transformation from local to global enterprise.

Sources 

Benkler, Y. (2011) The Unselfish Gene Harvard Business Review (July-August 2011)

Matzler,K. Veider, V.Kathan, W. (2015) Adapting to the Sharing Economy MIT Sloan Management Review (Winter, 2015)

 

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