Here is some news about the travails of online tech companies, online retailers and other online businesses. Many of them, especially the giants like Facebook, Instagram, Grab and Singapore's largest company 'Sea'? are facing losses or big drops in their profits as well as crashing share prices.
Is Online commerce a fad, that is now losing its 'novelty' value?
I have come to realise a few things. No one can rely on new technology to keep ahead of the market for too long. Soon someone else will come up with the 'new and better version' of the latest technology. Thats how the market keeps moving forward.
Constant innovation is absolutely critical to keep staying ahead.
The second thing is "low barriers" to entry. If a 22 year old 'IT entrepreneur' working from home can write a fantastic new App or create a new type of web media using his laptop or a desktop, and make a billion dollars almost instantly, then the next 22 year old can also do it. Perhaps this is what is happening to Online tech companies.
Here is a quick video.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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