Wednesday

Toolkits and Tollgates for High Growth Markets


Sidekicks Trump Primos
During a Gold Rush in
Concrete or Virtual Fields


In the throes of a gold rush, the best strategy for growth – whether in terms of business or investment – is to cater to the swashbucklers on the front lines by way of toolkits and tollgates rather than lead the charge into the unknown. By plying the wildcats in the field with the essentials they need, the sidekicks at the rear can extract a huge share of the bounty reaped in the budding terrain.

On one hand, the heap of opportunities in a flowering market has a way of luring myriads of eager beavers. On the other hand, the mass of firebrands rushing into the wilderness are for the most part destined to flail and flub then flop and fail. The dire fate of the hotheads is a natural consequence of the brutal competition in a scramble open to all comers regardless of germane experience, special savvy, or inborn talent.

By contrast, the context differs entirely for the canny supplier of armaments to the jousters in the field. The armorer can earn a juicy profit by providing the kit required by the combatants bent on bashing each other in their frantic quest for lucre. The advantage of the aide applies to the panoply of domains ranging from mining to farming in the primary sector; from carving to brewing in the secondary branch; from shipping to banking in the tertiary patch.

To spotlight the key concepts, we examine a case study in depth along with a medley of vignettes in brief. The first cameo involves a literal example of a gold rush. A bounteous lode in California gave rise to a stampede of migrants on a global scale for the first time in the annals of history.

More recently, a gold rush of a different kind arose with the upgrowth of digital technology. As usual in a free-for-all, however, the hustlers on the front lines had a rough time trying to hit the jackpot or even make ends meet.

By comparison, the vendors of tools and services had a field day. Thanks to the toll positions they staked out, the sidekicks as a group flourished as the markets bloomed. As a result, the adjuncts in the wings managed to outshine the primos at center stage in the realms of hardware as well as software.

Granted, the go-getters plunging headlong into a lush tract have a way of attracting the bulk of the attention and hoopla along with the financing and glory. On the downside, though, the crunch of competition in a riotous field has a way of quashing most if not all of the dashers on the front lines. As a result the mass of entrants end up losing their shirts, and likewise for the patrons who back the upstarts.

In contrast, a sprouting field has plenty to offer the crafty players working behind the scenes. For this reason, the entrepreneur as well as the investor ought to pay close attention to toolkits and tollgates as a way to ensure sound growth in a booming market.


NOTE: The full report is a document in PDF form under the title of “Toolkits and Tollgates for High Growth Markets”. The publication may be viewed or downloaded from the Library at MintKit Core.

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