Solution 3: Reinvent business with digital economics

This topic is discussing the how the model for business to change with digital economics. Chris Anderson is a big-idea man, he argued that the near-zero marginal costs of digital distribution have created a new marketplace where free pricing is practically a force of economic gravity, and every industry is either going to have to become free or compete with free in the future.

Well, Internet is a huge advertising medium, you can virtually sit in middle of nowhere and connect with people across the globe, its quite fast and efficient with low cost. It's much cheaper than advertising on tv plus you will be advertising to million even billions of people. So, this is a very easy way of advertising for many companies plus the advertisement could also become interactive making it more interesting. when you purchase a product on Internet its usually cheaper because usually the store selling the product which allows direct contact with the consumer.

However, there are always problems such as items that were sold were often not in stock, even when stock came in there was inadequate warehouse space and insufficient staffing. When goods went to customers they were often sent too late, or were wrong items, were broken on arrival or had vital parts missing,etc. The goods were often returned, but there was no solid system for handling returns.

Anyway, I think this sentence that Chris Anderson said is really good---"The old model for business was 'make something people will pay for'. The new model is something people will want and something they'll pay for." Maybe Internet is a good place for business to change into a new model.