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Is Facebook Headed For \u00a0The Same Way\u00a0As \u00a0Roman Empire and General Motors <\/b><\/p>\n
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Romans were brave rugged people till the empire became rich . After that they started keeping slaves for doing the dirty work . Finally slaves were inducted into the most sacred core activity or the wing of any empire ie its army to fight its wars . From then on the end of the Roman empire was just a matter of time .<\/p>\n
General Motors became too successful and too big for it\u00a0 to be supple and fighting fit .<\/p>\n
It, like dinosaurs, could not adjust to changing climatic demand of more reliable and fuel efficient \u00a0cars . It avoided fighting and winning the technological \u00a0battle with Japanese car makers in seventees and instead survived first by designing gas guzzler SUVs out of truck chasis .Subsequently \u00a0it tried making a half baked diesel engine based car which failed miserably . Finally ,like Romans, it went into \u00a0a buying spree of factories to remain world\u2019s largest car maker . The last was acquisition of Daewoo factory of Korea in 2002 in the hope of getting a good small car design \u00a0. It got a shot of adrenalin in Chinese deal\u00a0 but finally nothing could save it and old GM filed for bankruptcy in 2009.<\/p>\n
Facebook is not able to innovate enough anymore in a field where one survives only by innovation . It has a \u00a0user base of one billion which is shrinking due to youth changing loyalty . Fifty five employee of WhatsApp can earn 19 billion dollar because they can innovate more than five thousand employees of Facebook . It is the Toyota challenge that Facebook is trying to meet by buying Daewoo. It can stall and delay the doomsday but cannot avoid it . Business models don\u2019t change the fate of technological companies.<\/p>\n
Facebook can survive by buying competitors at low price by judging budding success stories at ealy stage but apparently it does not connect with innovators anymore. It instead buys a booming company to retain number one slot of user base just like GM .But it can’t prevent new ideas from coming up \u00a0. The writing on the wall is clear , ‘ Innovate or Perish ‘<\/p>\n
I think Facebook will shine for five years \u00a0just as GM did by Chinese deal but will suddenly sink without trace after ten years\u00a0.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
Is Facebook Headed For \u00a0The Same Way\u00a0As \u00a0Roman Empire and General Motors Romans… more