BLOG: ‘The Business of Bespoke’
Here is a taste of what Peter has to say – to read the full article check out our 25 years digital publication here.
“Why are there so few global players in the eLearning development field?
“One key factor is the low entry barriers. These have made for plenty of competition, but also driven down margins and, in the longer term, that constrains growth.
“Another is the low switching costs for customers. Bespoke companies need a constant stream of new business and when switching costs are low and price competition fierce, this is not a recipe for stable growth.
“Over the past decade better communications have exposed providers to global competition, most notably from India, resulting in further downward pressure on prices.
“Unfortunately potential cost savings from offshore and crowd based sourcing are rarely fully realised as the reduced direct costs can be outweighed by additional management costs in ensuring that quality, creativity and cultural relevance are not compromised.”
Peter goes on to discuss the rise of rapid development, merger mania, mould breakers and thoughts for the future. To keep reading click here….
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