Category: Business

What is a business opportunity? In most cases, it is information asymmetry.

You know the production cost, retail price, huge spread and brokerage profit of a good. You know some suppliers and manufacturers are holding a lot of inventory and can’t sell them. You know some popular platforms are difficult to make money, and they don’t know what to sell. You know some emerging markets and platforms have low-cost traffic. You know that a certain manufacturer is rushing to promote products, and he has a large amount of promotion budget, but the promotion cost is very high. This is an information asymmetry.

Information asymmetry is not just a simple price difference. For example, the cost of artificial labor in an industry is extremely high, and the time-consuming and cost-effective effect is not good. You know that there are new breakthroughs and algorithms in the academic field. It can be a good substitute for such labor, which is also an information asymmetry.

Why is Silicon Valley so powerful? There are some “academic brokers” in colleges and universities, which really open up the information asymmetry between academia and industry. The power of this explosion is still remarkable. “Academic brokers” is an easy-to-understand statement, but it is definitely not derogatory. If you don’t have academic ability, you can’t do it. If you don’t understand industrial business, you can’t do it as well. It is hard to do both.