The Friction-Free Economy: Marketing Strategies for a Wired World

According to T. G. Lewis, the rules of marketing are undergoing revolution--and those companies marketing in accordance with the old rules are doomed. Lewis defines a friction-free economy as one that assumes a zero production and distribution cost, with no competitors and infinite resources. A key component of Lewis's friction-free economy marketing is getting major market share fast, known as mainstreaming, as the company that becomes mainstream first becomes extremely difficult to dislodge. Lewis uses America Online as an example. He describes how the company flooded the marketplace with free access to its service and ended up with the lion's share of available consumers. As a result, America Online continues to grow because, in a friction-free economy, the greater your market share, the greater it becomes.

While Lewis's strategy is most visible in the computer world proper, Lewis also cites examples of businesses as diverse as fast food restaurants and car dealerships that are using the wired world to gain the friction-free economy advantage. These businesses focus on smaller groups of customers rather than broadcasting to the masses, giving away what other companies would sell and inverting the classic rule of supply and demand. In addition to covering the mechanics of the emerging economy, Lewis discusses the strategies that will enable businesses to succeed, whether they are the first in or have to carve out their position against tough competition.