Is it possible that the economy struggles but online businesses thrive? If so, why?
In these times of economic difficulty one must consider how these challenges will be meet and what the future holds. I believe that the economic crisis will hit certain industries harder then others. I believe it will hit different parts of the country harder then others. I believe California is hurting the most right now. I just read that unemployment in California is up above 12%. That is highest its been in years. Perhaps the highest since the great depression, which was around 25%. If California is the trend setter for other locations in the US then we are in for a bumpy road.
Yet, online searches and businesses are not as impacted, Why? Is it the business model? Could the online, buy direct, wholesale model thrive in a time when people are looking to cut cost? How couldn’t it? For example, the pest control industry could see some declines due to consumers cutting costs, but the do it yourself pest control companies will be there to pick up the scraps by offering a cheaper pest control solution. And when the economy swings back… the guys that don’t really want to do it themselves will switch back over to their local exterminating guys.
Further, online marketing and advertising is cheap compared to mass media marketing. 20 million impressions online won’t cost you the same as a superbowl commercial. So it may even be that the online business model is more effective. Imagine that, technolongy advances and produces more effective solutions. That should be the way of the wheel.
Either way, brace yourself for an fun, exciting, dangerous, and scary economic rollercoaster. I guess it all depends on where you sit on the ride that makes the difference.