Tuesday, February 01, 2005

Beware when web services outpace consumer demand

Net Sense

B Francisco: "When company innovation is driven by the desire to keep up with rivals (and investors' high expectations) rather than what consumers need and demand, it's an invitation to trouble...

it appears to me that many companies -- in their effort to keep up their expected growth trajectory -- are throwing service upon service at consumers.

Some of these services are merely slight improvements over what's already out there. Some are services that consumers aren't even aware they need.

Unless these services are useful or differentiated enough, consumers won't pay for them. Nor will they stick around long enough for advertisers to pay to reach them."

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