Communication Technologies - Report Example

Outline 1. Introduction 2. Why is the ‘share economy’ in this unit? 3. What is the relevance to communication technologies and change? 1. Housing a. Different kind of rental market. b. Holiday accommodation. 4. Torrenting of media content, Television and cinema. 5. Bypasses old media distribution channels. a. Car sharing b. Avoids extra costs of car ownership while enjoying the benefits only when need. 6. What makes these three things possible? 7. How has technological change affected this? 8. Reputation economies 9. What else? 10. What has been the policy or legislative response by governments to this? 11. What is the assemblage? 12. Communications technologies 13. Online platforms 14. Discourses, terminology and ways of talking about sharing within different contexts 15. Consumer practices and commercial transactions between parties 16. Shared interests Share economy Introduction Focusing on the different approaches of dealing with the economy, new features and trends have developed. Such developments have effectively changed the way people interact with regard to economic associations. The uncertain nature of the economy has led people to find different alternatives to mitigate the impacts of the harsh economic conditions (Fagerberg, 2002). One of these strategies includes the share economy which is the recent invention. It is premised on a reputation economy and sharing practices rely on assemblages of reputation. Why is the ‘share economy’ in this unit? Studying the emergence of new consumer behaviours is important in the study of communication assemblages. Share economy in this unit helps one to understand the divergent ways available for consumers to acquire property. This helps an individual to understand how technology is connecting people to information, other people as well as physical property. Share economy is a new concept that is rapidly growing among people and it has created opportunities for consumers to acquire what they need when they need. Share economy is a vital economic concept that gives relevance to the current communication technologies and changes. What is the relevance to communication technologies and change? Share economy has greatly been influenced by the changes and development of the communication technologies. The improvement in telecommunication has played a major role in the establishment of share economy all around the world. This can be attributed to the enhanced ability to advertise and publicize the concept of share economy. Improved monitoring systems and surveillance technologies have enhanced the development of share economy which is mainly based on trust. 17. Housing The sharing economy has led to many changes in the normal and conventional process of leasing or renting a premise. The rising demand for cheap accommodations and the need to cut cost on unnecessary use of resources is the major driving force of the concept. Consumers can now access or acquire whatever they need whenever they need it and similar dispose it when their need is satisfied. Airbnb for instance has come up with a different model of renting out rooms as well as an entire apartment. a. Different kind of rental market. In the new model introduce in the real estate market by AirBnB, consumers can hire rooms and apartments for short term use. Airbnb is one of the major companies involved in the collaborative consumption business which is also known as the peer-to-peer economy. Nonetheless, the company has been under scrutiny by the authorities for violation of state zoning regulations according the New York State Attorney General’s report (Fagerberg, 2002). AirBnB allows individuals to share their homes and live together in a cost sharing agreement which makes life easier. This move has been informed by the rising rental cost that is slowly becoming unbearable for most of the middle level income earners. The plan is to have people living together and sharing the rental cost. Not only does it ease the burden of having to pay for an entire apartment singlehandedly, but also help individuals to save on unnecessary expenses. This different kind of rental marketing has been faced with a number of challenges just like any other industry. Berlin for instance has banned short-term rentals in popular parts of the city (Fahey & Kenway, 2010). The authorities lament that short-term rental plans are offering illegal visitors an asylum in the country. In an effort to combat illegal immigrants, the government insists that a short-term rental plan must be certified and approved by the authorities. b. Holiday accommodation. People spend a significant percentage of their income on accommodation during holiday trips. This has been a major challenge to consumers who want to have good time in different parts of the world but the cost of accommodation in hotels is just too exorbitant. The sharing economy community is giving an alternative to save consumers from such expenses. The Sharing economy system allows people to share the cost of renting an apartment together hence reducing the accommodation expenses. 18. Torrenting of media content, Television and cinema. Violation of patent rights is a serious criminal offense that can amount to serious punitive action against a culprit. Nonetheless, new sites where media content can be accessed easily and for free are being developed every single day. Websites like the piratebay is among the greatest players in the industry that are involved in Torrenting copyrighted media content. Such torrents are quickly shared among users making it almost impossible to control them. Sharing economy community has allowed the use of such copyrighted content through their websites. The internet has greatly accelerated the movement of products from one person to the next. Sharing has become the main source of getting information and spreading it as well. However, the new growing market is facing some regulatory quagmires especially with most of the rules set by authorities having negative implications on the system. On a positive light, the sharing economy has made it easier for owners of property to connect with buyers in a convenient platform, the internet. a. Bypasses old media distribution channels. Sharing economy has significantly changed the normal way of doing business hence bypassing old media distribution channels. Most importantly, the system has limited the need for middlemen in trade (Ong & Collier, 2005). This has as a result reduced the cost of doing business hence reducing the prices of goods and services. The old media distribution channels were in a way hindering the movement of media content especially music, films, and television. Changes in the telecommunication industry have since changed the situation. Sharing companies have made it possible for consumers to communicate directly to the producers hence avoiding middlemen. Uber is one of the companies with a global reputation that offers such services (Ong & Collier, 2005). Uber has also been under the public and authorities scrutiny for some presumed irregularities. The company is being accused of engaging in business that is slowly killing the cab industry. It has also been accused of price-gouging as well as irresponsible attitudes towards safety. 19. Car sharing Car sharing is the most rampant business in the sharing economy after rental. The principle about car sharing is very obvious. The current cost of maintaining a car is an extra expense that many people would rather avoid (Cohen & Kietzmann, 2014). Although transport is a very essential in our lives, owning a car is not the only way to satisfy the need to move from one place to another. The sharing strategy draws its philosophy from this reasoning. a. Avoids extra costs of car ownership while enjoying the benefits only when need. For one to enjoy the services and comforts or owning a car, one does not need to incur the cost of buying one (Albinsson, & Yasanthi, 2012). The sharing economy has been designed to lessen the burden of individual having to own their own personal vehicles. In this plan, one can easily hire a vehicle from a number of companies that offer such services (Albinsson, & Yasanthi, 2012). This guarantees the customers that they will only incur the cost of a car when they need it. Consequently, the consumers will enjoy the benefits of owning a car but save on the expenses of owing one. What makes these three things possible? Sharing economy is greatly influenced by technological advancement. The development of electronic surveillance equipments for instance have helped in the development of car tracking systems (Klein, 2014). With this garget, renting out a car to strangers is o longer a cause to worry about since the company can track its movements and location at any given time. The internet has also played a major role in the development of sharing rental houses, movies, media content as well as car sharing. However, the business majorly runs on thrives on trust between the customer and the owner. This has been cited as the major shortcoming of the sharing fraternity. How has technological change affected this? Technology provides the infrastructure required for the sharing business to flourish. One of the key areas where the internet plays a major role is providing a platform for the consumers and the producers to meet. This is the market place for the sharing business. Most of the companies that offer sharing services have used the internet to advertise and market their products. Electronic appliances have actually accelerated the speed of passing information and at the same time reducing the cost of doing so. Reputation economies The world is slowly moving towards a very dynamic direction with regard to commerce. The new emerging exchanging platforms are rapidly heightening the possibilities of a world shift from the normal currency system (Lim, 2014). Such platforms are providing avenues through which exchange of products can be done through non-financial resources. Reputation economies are steadily replacing the conventional economic structures by offering online alternatives (Klein, 2014). The threat against the normal use of currency can be projected by scrutinizing technologies like the Bitcoin virtual currency. Other than this, with the pace set by the global technological advancement, individuals’ online reputation will become more important than the actual credit history (Klein, 2014). Reputation economies base the reputation of an individual on their online account. They have created a new platform for people to add value to theirs live (Botsman & Rogers, 2011). In the conventional economic practices, one’s reputation is based on assets, employment, and capital. The new reputation economies are giving people value through other means. What else? The cost and time of doing business has also change positively as a result of sharing economy. Since the middle men who in a traditional economic setup make the prices go up are not involved in the sharing business, the cost of products reduces significantly. In addition, the effectiveness of transacting business and the speed of responses are also accelerated. Methods f payment in this new economic system is more secure and faster compared to the traditional system. What has been the policy or legislative response by governments to this? The government legislative responses to the growing sharing economy has been quite hash on the business. As mentioned earlier, some governments have restricted the rental share policy. The government faces a dilemma in whether to promote the creation of new businesses or whether to protect the already existing ones (Meade, 2013). The idea of collaborative consumption provides great business opportunities but also it opens a window for mass violation of the law. For instance, the car hiring business has been under scrutiny for giving their vehicles to unlicensed drivers. That raises great safety concerns among road users. Again, if the rental business is regulated in a manner that the tenants are traceable, the issue of terrorism will come up (Klein, 2013). The government is therefore responding to the sharing economy system in a cautious approach to ensure all interests are protected. What is the assemblage? Communications technologies Communication technologies have significantly influenced the share economy. Electronic gadgets such as mobile phones, computer, IPads, and internet connectivity have played a major role. Through smart phones, consumers are able to log in to the websites where sharing services are offered. Thorough their phones, they are even able to chose a product, make an order and even make payments. Computers allow the consumer to access the internet just like a phone does. At the comfort of their home, consumers can view products and similarly make orders and pay for the item online. Online platforms Online platforms such the social media have been used to pass information and communicate all over the world. The best thing with such platforms is that they expose ones products to a global network and market. This increases the chance of one getting a buyer or a buyer locating a seller. There are websites that are generally dedicated to such activities. They include eBay and Amazon, where one can log in and view the products displayed. Applications such as WhatsApp enhance communication between the customer and the buyer cheaply. It enables the exchange of product picture for the customer to view. Discourses, terminology and ways of talking about sharing within different contexts The terms used to describe sharing in different context can display either a negative or a positive aspect of it. Depending on the product, sharing can be seen as either a good or a bad system. For instance, in the context of media content, the real idea of sharing can mean a totally different thing. Intellectual property rights can be greatly compromised by the sharing economy system (Giudice, Peruta, & Carayannis, 2013). Consumer practices and commercial transactions between parties Consumer practices and transaction between parties are crucial. Based on trust, the sharing economy is prone to defaulting. The commercial transaction is however swift and easy. Sending money via the internet or paying using alternative non-financial resources has enabled the growth of sharing economy. Shared interests The shared economy is a system driven by the aspect of common and collective interests. People with similar interest come together to purchase and cost sharing on a product of mutual interest. The aspect of collaborative consumption is highly dependent on consumers shared interest. References Albinsson, P. A., & Yasanthi, P. B. (2012). Alternative Marketplaces in the 21st Century: Building Community through Sharing Events. Journal of Consumer Behaviour, 11(4). 245-254. Botsman, R., & Rogers, R. (2011). What’s Mine Is Yours: How Collaborative Consumption is changing the Way We Live. New York, NY: HarperCollins Publishers Cohen, B. & Kietzmann, J. (2014). Shared transport. Organization and Environment, 7(3). 124-134. Fagerberg, J. (2002). A layman’s guide to evolutionary economics. Oslo, US: University of Oslo Fahey, J., & Kenway, J. (2010). Thinking in a worldly way: mobility, knowledge, power and geography. Discourse Stud Cult Polit Educ, 31(5). 627–640.  Giudice, M., D., Peruta, M., & Carayannis, G. (2013). Social Media and Emerging Economies: Technological, Cultural and Economic Implications. New York, NY: Springer Science & Business Media Klein, J. (2013). Reputation Economics: Why Who You Know Is Worth More Than What You Have. New York, NY: Palgrave Macmillan. Klein, J. (2014). The rise of the reputation economy. Retrieved from: http://forumblog.org/2014/01/the-rise-of-the-reputation-economy/ Lim, L. (2014). Singapore's sharing economy is on the rise. Retrieved from: http://www.channelnewsasia.com/news/business/singapore/singapore-s-sharing/1307194.html Meade, J.E. (2013). Alternative Systems of Business Organization and of Workers' Remuneration. New York, NY: Routledge. Ong, A, Collier, S. J. (2005). Global assemblages: technology, politics and ethics as anthropological problems. Blackwell, UK: Malden. Read More