Comments on: In a Connected Global World, Is Local The New Competitive Advantage on The Web? http://www.businesspundit.com/in-a-connected-global-world-is-local-the-new-competitive-advantage-on-the-web/ Entrepreneurship, Startup Companies and Business Philosophy Mon, 23 Nov 2009 02:54:25 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Mike http://www.businesspundit.com/in-a-connected-global-world-is-local-the-new-competitive-advantage-on-the-web/comment-page-1/#comment-2236 Mike Thu, 03 May 2007 18:24:21 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=3155#comment-2236 Thanks, Rob. I think the SMB area is a nice one for erecting barriers to entry (into the hearts and minds of your existing customers)! Mike Thanks, Rob. I think the SMB area is a nice one for erecting barriers to entry (into the hearts and minds of your existing customers)!

Mike

]]> By: Rob http://www.businesspundit.com/in-a-connected-global-world-is-local-the-new-competitive-advantage-on-the-web/comment-page-1/#comment-2235 Rob Thu, 03 May 2007 17:48:20 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=3155#comment-2235 Mike, I really see two things. First, there are types of information that I can gather locally that you would have trouble with - like an exhaustive map of parking spaces in downtown louisville. Even if you could get it all, you would have problems keeping it up to date. Combo solutions where you have a web presence for convenience but a real local presence might be good for fitness, health care, etc. Plus, if you are doing something like selling technology packages on the web to small business owners, many of them want someone local. SMBs are high touch sales. Telemarketers will rarely get a decision maker. Mike,
I really see two things. First, there are types of information that I can gather locally that you would have trouble with – like an exhaustive map of parking spaces in downtown louisville. Even if you could get it all, you would have problems keeping it up to date.

Combo solutions where you have a web presence for convenience but a real local presence might be good for fitness, health care, etc.

Plus, if you are doing something like selling technology packages on the web to small business owners, many of them want someone local. SMBs are high touch sales. Telemarketers will rarely get a decision maker.

]]> By: Rob http://www.businesspundit.com/in-a-connected-global-world-is-local-the-new-competitive-advantage-on-the-web/comment-page-1/#comment-2234 Rob Thu, 03 May 2007 17:10:01 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=3155#comment-2234 Bob, the revelation is that web companies have typically moved in the opposite direction. The web let you get customers from anywhere, no matter where you were located, without a local presence. But now that everyone is playing that game, it's time for something different. Bob, the revelation is that web companies have typically moved in the opposite direction. The web let you get customers from anywhere, no matter where you were located, without a local presence. But now that everyone is playing that game, it’s time for something different.

]]> By: Bob http://www.businesspundit.com/in-a-connected-global-world-is-local-the-new-competitive-advantage-on-the-web/comment-page-1/#comment-2233 Bob Thu, 03 May 2007 14:38:32 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=3155#comment-2233 So where's the revelation in this? Many firms have had local capabilities for years. They're called branch offices. Many, if not the majority, are measure on a P&L, are staffed by local people and win or loose by understanding their local market. It's a well known fact that local relationships are key here. It should also be no big surprise that a start-up that is local and understands the local dynamics will have a greater chance at success than some out of towner will. The barrier to entry for a newbie in a low capital intensive venture is the competitive entrenchment that exists when relationships are strong. Somehow the idea that relationships do not matter any longer got shoved into the mainstream. It's pure poppycock. I daresay they are beginning to matter even more because people think all one has to do is operate a website from New York and then market to Kansas City. And, many of the newly minted MBA's take no time to develop relationships. So where’s the revelation in this? Many firms have had local capabilities for years. They’re called branch offices. Many, if not the majority, are measure on a P&L, are staffed by local people and win or loose by understanding their local market. It’s a well known fact that local relationships are key here.

It should also be no big surprise that
a start-up that is local and understands the local dynamics will have a greater chance at success than some out of towner will. The barrier to entry for a newbie in a low capital intensive venture is the competitive entrenchment that exists when relationships are strong.

Somehow the idea that relationships do not matter any longer got shoved into the mainstream. It’s pure poppycock. I daresay they are beginning to matter even more because people think all one has to do is operate a website from New York and then market to Kansas City. And, many of the newly minted MBA’s take no time to develop relationships.

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