19
Feb
10

Well Curve


The Well curve, as opposed to the standard normal distribution or the bell curve is “bi-modal”, i.e. low in the center and high on the sides.

Some examples where the well curve distribution is followed are:

  • Organization size: For a variety of reasons, big companies are growing bigger (witness the number of mergers) and the number of small businesses is multiplying. But there are fewer midsize companies.
  • Geopolitics: The past decade has seen the rise of huge multinational federations (NAFTA, the European Union, etc.) At the same time, small independent states and secessionist movements are also multiplying. And the mid-sized countries, like Italy and Spain, are losing population, power and status.
  • Consumer culture: Tiny screens (on cell-phones, PDAs and now wrist-PDAs) are multiplying, while large-screen TVs are also proliferating. Mid-sized seems to be going out of style.
  • Retail: Wal-Mart has become the largest company in the Fortune 500, and big retail chains are expanding. At the same time, the number of small, specialty boutiques is soaring. But mid-sized companies are struggling.
  • Drooping middle class: The Federal Reserve Board’s latest analysis of family finances shows that, in the past decade, American incomes were up across the board. But when the population is divided into five equal segments, a well curve emerges – there was faster growth at the top and bottom, with less growth in the middle.
  • School Grades: In the last decade, the percentage of students scoring in the highest ranges increased, the percentage scoring at the bottom level increased, but the number with mid-scores dropped.
  • Purchasing patterns: The Wall Street Journal noted last year, “consumers are flocking to the most expensive products and the cheapest products, fleeing the middle ground.”

The implications are huge: insurers, marketers, policy makers and pollsters may be basing decisions on faulty premises about what is “normal”. They are assuming “middle-America”, “middlebrow” tastes. But, the importance seems to be shifting to the edges.

Read more here.

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So what’s this blog about?

Another attempt? Well yes. Attempting to figure out another sustainable model (there are some other attempts going on parallel-ly). Well, we have a lot of questions in mind. we read up stuff, we do some research to find answers to these questions. This is an attempt to publish that little 15-20 minute research.

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