Changes in technology can have profound effects on your business. These changes can be both good or bad. Let’s look at an example.
The internet started to be accepted and widely used by consumers about 25 years ago. It has forever changed the business environment. The advent of the internet has created or eliminated millions of jobs, and transferred trillions of dollars of wealth.
Consider the case of Amazon, which opened for business in 1995. Jeff Bezos started the company, operating out of his home, selling books online. The internet allowed him to launch a new business with virtually no start up cost.
The internet spawned social media sites like Facebook, which gave Amazon the ability to reach millions of people without the expense of traditional advertising on TV, radio and print.
He could now sell to customers anywhere in the world without the expense of retail stores.
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Twenty-five years later, Amazon employs more than 750,000 people, earns more than $230 billion a year and is the largest retailer in the world. Did I mention that Jeff Bezos is the richest man in the world?
When Bezos started selling books in his garage, Barnes & Noble and Borders were the world’s largest book retailers. They did not recognize the opportunity the internet provided, nor the threat it represented in the hands of a competitor.
The internet has provided a new channel to deliver goods to consumers. Netflix used the internet to stream movies online, and forced Blockbuster and Hollywood Video out of business. Google used the internet to provide an online directory, virtually eliminating the yellow pages.
As companies like Amazon enter the world of online prescriptions delivered to your door, retail outlets like Walgreens and CVS are feeling the pinch.
Amazon is just now entering the world of residential real estate sales. Traditional brokerages would be well advised to pay attention to changes in technology, especially in that industry.
Bill Nordbrock
Bill Nordbrock is vice president of community relations for SCORE Southern ÃÛèÖÖ±²¥, a nonprofit that offers free small-business counseling. For information, go to , send an email to mentoring@scoresouthernaz.org or call 505-3636.
