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	<title>Business and Marketing &#187; development</title>
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		<title>Developing the Infrastucture</title>
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		<pubDate>Thu, 06 Aug 2009 15:27:03 +0000</pubDate>
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				<category><![CDATA[development]]></category>
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		<description><![CDATA[When personal computers first became available in the mid-1970s, most businesspeople saw them as a passing fad. Not Ben Rosen. At the time, Rosen was working as an electronics industry analyst at the Wall Street firm of Morgan Stanley and publishing a newsletter on the electronics business. He began writing, and talking, about personal computers. [...]]]></description>
			<content:encoded><![CDATA[<p>When personal computers first became available in the mid-1970s, most businesspeople saw them as a passing fad. Not Ben Rosen. At the time, Rosen was working as an electronics industry analyst at the Wall Street firm of Morgan Stanley and publishing a newsletter on the electronics business. He began writing, and talking, about personal computers. While others saw personal computers as toys, Rosen viewed them as the basis for a dynamic new industry. Through his newsletter and informal conversations, Rosen began to spread the gospel of personal computing.</p>
<p>Gradually, Rosen began to win converts. First the readers of his newsletter became believers. Then Forbes magazine ran an article showing how Rosen used a personal computer for financial analysis. More people started to pay attention to these new machines. Soon, companies began to view a favorable report from Ben Rosen as the key to success in the personal computer business. A bad review from Rosen was the kiss of death.<br />
Why was Ben Rosen so influential ? Had he been an obscure broker, his endorsement of the personal computer, or any particular personal computer company, would not have been very significant. But Rosen was considered one of the top analysts in the country. People believed him to be a credible source of information.</p>
<p>Rosen played a key role in the infrastructure of the electronics industry. Every industry has an infrastructure, though it takes a somewhat different form in each case. The infrastructure in cludes all those people between the manufacturer and the customer who have an influence on the buying process. These people give credibility to the product and the company (or, in Rosen’s case, to a whole new industry). Without the support of the infrastructure, the product and company are sure to fail.</p>
<p>I like to picture the infrastructure as an inverted pyramid, with the manufacturer at the bottom and the customer at the top. Figures 5 and 6 show the infrastructures for two industries personal computers and microprocessors. In each case, information about the product and the company bubbles up to the customer through the infrastructure pyramid, largely through the word-of-mouth process discussed in the previous section.</p>
<p>Each level of the pyramid influences other levels, particularly those above it. Take a look at the personal-computer infrastructure. If third-party hardware and software companies develop products to be used with a new personal computer, industry opinion leaders or “luminaries” begin to take notice. These luminaries, who can be consultants or financial analysts or key users, begin to influence others. Dealers and distributors become interested.<br />
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