Will Amazon's kindle survive?
Well yes.
However I feel the pertinent question is with whom?
A good analogy would be would a US$ 1300 laptop survive against a US$600 Desktop.
Again the answer is yes, but the pertinent question is actually, with whom?
So who is the right customer for 'Kindle'?
At US$ 399, I choose to be old fashioned, so I will stick to the good old paperback.
I think I need to ask, how convenenient can this device be and how comfortable can I be to use the Kindle and ipso facto to shell out US$399.
Sunday, December 2, 2007
Saturday, December 1, 2007
most expenisve asset is also the cheapest..
In business, the most expensive asset for the enterpreneur is equity. This qualifications stems from the fact that any business takes time to build the business and this time is hardwork and persevearance put in by the enterpreneur.
This time is represented in the form of equity for the enterpreneur in his enterprise.
So he hold on to his equity and values his equity highly.
Small and medium enterprise also have a tough time making investments for future business opportunities. Firstly on account of the fact that when there are many avenues to make such investments, it becomes difficult to choose the optimal investment to maximise returns and also because small firms find it difficult to leverage liquidity. There are definite limitations imposed on small firms to the extent of debt they would be given by a financial institution (bank).
However when we look at the banks itself, especially in developed economies, shareholders equity generally referred to as Tier 1 capital is as low as 4% of liablities. And guess what are these liablities for a bank, the deposits the bank holds of the public.
What this means is if a bank goes bust, it has just 4% of its own funds to return incase of liquidation on the other hand it also means that the banks would never lend to any business leveraged in this manner, but is somehow able to garner funds from the public despite its overleveraged position.
This also means most banks have 4% of their own money while 96% comes from public
deposits, ineffect banks are doing business with public money.
This is in stark contrast to a business firm, wherein if not all at least 50% of capital needs to be from the owners of the business.
Ergo, a business firm if it defauts loses a greater amount-50%, while a bank loses 4%.
Given this information, the banks are the smart buggers, doing business with public money. Taking a greater risk with public money.
While a small business holds its equity dearly that has little value and does business with their own funds.
When a bank defaults, the soverign (reserve bank) prints more currency or bails them out. As we see in the case of Northern Rock.
While the business if it goes bust, the first lien is the bank's.
This time is represented in the form of equity for the enterpreneur in his enterprise.
So he hold on to his equity and values his equity highly.
Small and medium enterprise also have a tough time making investments for future business opportunities. Firstly on account of the fact that when there are many avenues to make such investments, it becomes difficult to choose the optimal investment to maximise returns and also because small firms find it difficult to leverage liquidity. There are definite limitations imposed on small firms to the extent of debt they would be given by a financial institution (bank).
However when we look at the banks itself, especially in developed economies, shareholders equity generally referred to as Tier 1 capital is as low as 4% of liablities. And guess what are these liablities for a bank, the deposits the bank holds of the public.
What this means is if a bank goes bust, it has just 4% of its own funds to return incase of liquidation on the other hand it also means that the banks would never lend to any business leveraged in this manner, but is somehow able to garner funds from the public despite its overleveraged position.
This also means most banks have 4% of their own money while 96% comes from public
deposits, ineffect banks are doing business with public money.
This is in stark contrast to a business firm, wherein if not all at least 50% of capital needs to be from the owners of the business.
Ergo, a business firm if it defauts loses a greater amount-50%, while a bank loses 4%.
Given this information, the banks are the smart buggers, doing business with public money. Taking a greater risk with public money.
While a small business holds its equity dearly that has little value and does business with their own funds.
When a bank defaults, the soverign (reserve bank) prints more currency or bails them out. As we see in the case of Northern Rock.
While the business if it goes bust, the first lien is the bank's.
Natural, Organic & Certified PETA - Fags
Natural “American Spirit”.
It is organic, "all natural" and not tested on animals and certified "cruelty free" by PETA.
It’s a pack of cigarettes with a ‘Red Indian Chief’ motif on the box?
A damn good niche these guys have tapped into. Perhaps, they should have been less blatant about it, I mean a pack of cigarettes that is all natural, organic and certified by PETA gets to be morally right but virtuously wrong - though incidentally comic.
For the smoker who wants to communicate affluence this is a great product if he can get by the ‘inconsistency’ first.
But then again, if the smoker smokes despite the smoke, I guess a smoker sees no inconsistency. it is the non-smoker who does.
It is organic, "all natural" and not tested on animals and certified "cruelty free" by PETA.
It’s a pack of cigarettes with a ‘Red Indian Chief’ motif on the box?
A damn good niche these guys have tapped into. Perhaps, they should have been less blatant about it, I mean a pack of cigarettes that is all natural, organic and certified by PETA gets to be morally right but virtuously wrong - though incidentally comic.
For the smoker who wants to communicate affluence this is a great product if he can get by the ‘inconsistency’ first.
But then again, if the smoker smokes despite the smoke, I guess a smoker sees no inconsistency. it is the non-smoker who does.
music we usually hear is not good music...
Most people prefer to buy music they have heard before. For people to have heard it before the song needs to be played repeatedly over a period of time; people will buy music only if they are familiar with it.
The TV or Radio station promoting these songs don’t do this on account of an RJ or VJ’s personal choice, the shows producer dictates which song to play depending on advertising revenues. So if it advertising revenues from a new film release, songs featured in the film will be played over and over in a way to patronize the music/film company.
So we don’t really get to hear good music but what is good money for the radio station or TV channel. Given that, its mostly new releases that we will hear and that will sell.
And truly, in the music/film distribution business, 75% of sales accrue from new releases. If so, do you have good music taste or does your taste just reflect what you are familiar with.
Perhaps, popular music is not necessarily good music it's just what we are made to hear to get familiar with.
Good music is what we usually don't hear often most likely from an independent label with not big budgets to promote.
The TV or Radio station promoting these songs don’t do this on account of an RJ or VJ’s personal choice, the shows producer dictates which song to play depending on advertising revenues. So if it advertising revenues from a new film release, songs featured in the film will be played over and over in a way to patronize the music/film company.
So we don’t really get to hear good music but what is good money for the radio station or TV channel. Given that, its mostly new releases that we will hear and that will sell.
And truly, in the music/film distribution business, 75% of sales accrue from new releases. If so, do you have good music taste or does your taste just reflect what you are familiar with.
Perhaps, popular music is not necessarily good music it's just what we are made to hear to get familiar with.
Good music is what we usually don't hear often most likely from an independent label with not big budgets to promote.
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