In oil business boom J.D Rockefeller concentrated his efforts to buy refineries, while others focused on finding oil.
Refining petroleum is necessary for its sale, so it is technological bottle neck in oil business.
Owning a refinery it is more safe than finding oil because you have a pool of oil prospectors and from this pool it is always someone who finds oil and needs to refine it.
Due to geographical and transport limitations, the oil producers had to sell in certain places.
In computer business Bill Gates bridged the gap between users and computer hardware. Due to convenience the market has to be limited to one or two operating systems. Regardless of the type of computer Gates sold its kits.
In internet business Sergei Brin and Larry Page connected the data to users with a easy to use algorithm. Due to its ease to use and its popularity Google has a virtual monopoly on internet searches and firms have to consider search engine optimisation on google.
In conclusion all three business models have these characteristics:
1. They own a technology that decreases the gap between resources and consumers.(refining oil, operating system software, search algorithm)
2.The technology is a bottle neck and it cannot be bypassed easily
3.There are constraints that force the users to use only one provider: cost of transport for oil industry, software compatibility for software industry, cost of data retrieval and transmitting for internet business.
4. There are all in an expanding country (By the way France had the first idea for internet: Minitel, Romanians refined for the first time the oil)
Refining petroleum is necessary for its sale, so it is technological bottle neck in oil business.
Owning a refinery it is more safe than finding oil because you have a pool of oil prospectors and from this pool it is always someone who finds oil and needs to refine it.
Due to geographical and transport limitations, the oil producers had to sell in certain places.
In computer business Bill Gates bridged the gap between users and computer hardware. Due to convenience the market has to be limited to one or two operating systems. Regardless of the type of computer Gates sold its kits.
In internet business Sergei Brin and Larry Page connected the data to users with a easy to use algorithm. Due to its ease to use and its popularity Google has a virtual monopoly on internet searches and firms have to consider search engine optimisation on google.
In conclusion all three business models have these characteristics:
1. They own a technology that decreases the gap between resources and consumers.(refining oil, operating system software, search algorithm)
2.The technology is a bottle neck and it cannot be bypassed easily
3.There are constraints that force the users to use only one provider: cost of transport for oil industry, software compatibility for software industry, cost of data retrieval and transmitting for internet business.
4. There are all in an expanding country (By the way France had the first idea for internet: Minitel, Romanians refined for the first time the oil)
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