Wednesday, March 07, 2007

Land, Labor, Capital and Enterprise are basic building blocks of a company. US has high labor cost but low capital cost. Alternately, China has high capital cost and low labor cost. At a firm labor, firms could be Land driven, like Real Estate Companies in India scouting funds on Land Bank, Labor driven like Infosys, Capital driven like Semiconductor Fab companies, and Enterprise driven like Google.

As land used to be source of power in Feudal ages, and still in some countries like Burma/ backward states like Bihar, future power is going to come from Enterprise inventory. Since Enterprise energy is not a constrained commodity like land, power will be driven by merit, and thats a good thing to happen

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