Thursday, November 09, 2006

American marketing

Americans are great and convincing in marketing.
Great because they think big.
They do not commercialize a cake or a car or any specifical product, they are great because they dared what nobody ever thought to market: The Stock market.

They began commercializing themselves and the American dream.
If you dare and dare big, then America will give you all the chances.
And indeed we saw that it worked.
Many got rich, very rich, powerful, very powerful.
What they never reported is the number of the ones who dared, dared big, and didn't make it.

In the 90'the American Dream found its best resource in the new emerging revolutionary communication mean that was the Internet.
To explain its fast growth they invented the Metcalfe's law, which appeal to Moore's law and said that "the value of a network would increase quadratically—proportionately to the square of the number of its participants" and gave an air of credibility to the mad rush for growth and the neglect of profitability.
The law was named in 1993 by George Gilder, publisher of the influential Gilder Technology Report. Like Moore's Law, which states that the number of transistors on a chip will double every 18 to 20 months, Metcalfe's Law is a rough empirical description, not an immutable physical law.
" A few very successful dot-coms did exploit the power of the Internet to provide services that today yield great profits. But when we look beyond that handful of spectacular successes, we see that, overall, the law's devotees didn't fare well. For every Yahoo or Google, there were dozens, even hundreds, of Pets.coms, EToys, and Excite@Homes, each dedicated to increasing its user base instead of its profits, all the while increasing expenses without revenue."

We would, more than an empirical law, need a statistic about how many made "the American dream of the Metcalfe's law"

"Because of the mind-set created, at least in small part, by Metcalfe's Law, even the stocks of rock-solid companies reached absurd heights before returning to Earth. The share price of Cisco Systems Inc., San Jose, Calif., for example, fell 89 percent—a loss of over US $580 billion in the paper value of its stock—between March 2000 and October 2002. And the rapid growth of AOL, which Andreessen attributed to Metcalfe's Law, came to a screeching halt; the company has struggled, to put it mildly, in the last few years."

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