Routinely, however, new business models do create large

Routinely, however, new business models do create large cost reductions that boost margins and profit growth in sustainable ways. Most of these new business models have come from start-ups which were funded by entrepreneurs and venture capitalists Nike Air Presto on the premise that there was a better way of serving needs that the current suppliers were ignoring.

Consider the advantages that mighty Microsoft has had in software design and production for personal computers for over 20 years. Microsoft's muscle is so great that it lost its antitrust trial concerning the way it competed with Netscape, which had been all but wiped out in the Web browser market even though Netscape was the original industry leader and that Netscape literally gave the product away for free. Microsoft's Explorer software was not only free, it Nike Shox TL1, came already loaded on new machines so the consumer saved time by using the unavoidable Microsoft offering. How could anyone hope to develop costs low enough to vie with such a powerhouse?

Red Hat did, and now shows signs now of creating a still lower cost business model than Microsoft's for personal computer and Web server operating systems. Red Hat's software is only partially developed by the company's staff. The kernel of its offerings was developed and is now maintained by programmers who did not and do not now charge for their time and effort.

The operating system is called Linux, and has drawn upon the talents of hundreds of the world's most innovative software designers. In the process, many customers find that Linux (an improved version of the original UNIX software) works better and is easier to work with than the Microsoft alternatives. Why do such programmers provide such a favor to Red Hat? Primarily because they want Nike Blazer Low, to be able to have access to the software's source code in order to create applications that are more pleasing and effective for their own use.

Microsoft refuses to open up it source code. While it is too soon to know, it may be that basing one's business on open source software is a superior business model for producing the best products and services at the lowest cost.