- Introduction
- Overview
- Fear and Greed
- Rules of the Game
- Summary
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Fear and Greed
In late 1999, a web producer at a web development agency attended a meeting with the executive of a large retail establishment. The purpose of the meeting was to discuss ways that the web agency's development team could build a web presence for the retail operation. Did the executive believe in the Internet? Not really, the executive admitted. He consented to exploratory discussions regarding an Internet presence because of the fear that one of his competitors will outmaneuver him in the Internet space.
It is an old saying that two fundamental forces move the financial markets: fear and greed. These same irresistible forces of human nature drive activities in the Internet space. The executive just described acts because of fear that a competitor will reach his customer base before his organization has time to effectively respond. Others like him drive forward ambitiously because of greed, to commandeer a "first-mover" market presence in a hot segment of a business before multiple participants settle into the hand-to-hand combat of daily business operations.
The anecdote about the executive illustrates the irresistible force that the web exerts on a modern business to change. One measure of the strength of a force is its ability to move an unwilling participant. By this measure the executive found himself moved by fear. Many other organizations have been similarly influenced. We cannot say for certain that the retail executive enjoyed success in his half-hearted endeavor. Perhaps his effort eventually fizzled. But the dynamics driving an industry require only that one participant in a given industry, through genius or sheer luck, assemble the team, the resources, and the business opportunity to capitalize on the possibilities presented by the Internet. His success sets the standard for other participants to follow. It doesn't matter whether the standard-bearer is a newcomer to the industry or is a long-time industry stalwart. The first pioneer to establish a successful beachhead sets the standard for the rest.