Thursday, March 31, 2011

Wikipedia: East India Company's Business Model

The East India Company led British colonisation efforts in the Indian sub-continent. It is interesting to note their business model.

The business model of the East IndiaCompany was a shift in technology, where they used ships not caravans, thusavoiding having to pay fortified towns along the route home.

To protect them from pirates and other nations, the British Navy became a world power,and the business model of the East India Company included setting up coloniesand installing governors. While the East India Company is defunct, it'sfamilies are still some of the most powerful in the world - they just changedtheir business model from one corporation to many.

It is important toremember that their wealth came from a monopoly given by Queen of England -1 on 31 December, 1600. Monopoly is a major business model (patents give one a "royalty" fora number of years, so the price is what the market will bear). In the case ofthe East India Company, most profits came from opium and caffeine (tea),tobacco, alcohol, firearms and slaves & slavery-based industries, which isan interesting commentary on its business model based on cravings and control.

(For reading the discussion on http://en.wikipedia.org, please click here)
(For reading on the East India Company on http://en.wikipedia.org, please click here)

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