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Saturday, 20 July 2013

Bloomberg BusinessWeek - The Social Media Bubble Deflating

Bloomberg BusinessWeek - The Social Media Bubble is Quietly Deflating

Social networking companies drew a meager 2 percent of Internet venture capital last quarter

Just a few months back, you may recall, along with Jim Rogers, we raised concerns about Facebook and generally the whole social media industry, referring to it as a generational fad and having difficulty seeing how a sustainable business model could be developed. Moreover, whether such tools or derivatives could find useful and profitable transitions into business markets. Guess what? Looks like the markets are tuning into Mr Rogers and ourselves as VC (Venture Capital) funding has plummeted to 2% this past quarter.

As one insider notes; what a business - "thinking about how to make people click ads"  And that pretty well sums up the industry's "Critical Success Factor" and how you build any sort of Sustainable Competitive Advantage around it, remains a puzzle.

Anyway we still believe that the big ticket, high margin objects just simply requires good ole face to face contact -  a little of that human touch!

July 20, 2013

Not a Happy Camper

Comparing the social media frenzy to the dot-com bubble may not be such a good analogy, albeit in both cases you can observe that common sense gave way to a strange fear of missed opportunity combined with unrealistic expectations. The other common ground was that object business measures, standards and principles no longer applied . Market history repeated again.

And for some strange reason this won't be the last time. Humans? Go Figure?

Dr Peter G Kinesa
July 20, 2013  

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