
Answer looks simple while stating that an entrepreneur runs the business and the consumer is the source of business. But the dynamics of business have been always unknown.
Let us look at the simple question - Is really a business for the profit of entrepreneur or creating value for a customer?
When we look at the practical evidence outside us, we get some mixed feeling. There are many products in the market, which may not have any value to the customer, than also they are highly charged successfully. There are many companies, who never think beyond their personal gains, than also they are growing with jet speed. This reflects the presence of imperfect market.
Really the question is of trade-off and circumstances? Tradeoff is the simple mechanical formula for finding the optimal point between the profit margin and the customer value. What profit margin a consumer is ready to give can be known from the intensity of his needs and his ability to fulfill it.
You may find hard what the circumstances mean. It really identifies the position of the customer whether he is able to speak or not. Customers are human being. They lack the resources like time and money that needs to be given for clicking the right products. Again they may be going with good or bad time that greatly reduces the decision making power of the consumer. When this happens, insensitive entrepreneurs can take the undue advantage of the poor conditions of consumer for the short time period that may become everlasting.
So market perfection is really a goal that can only be obtained when the consumer will have time, money and freedom. Until that time an entrepreneurs will have an added advantage to run the business with their own terms and conditions while ignoring the pains of consumer.
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