If I was CEO of either Target or Kmart, or any one of the (few) competitors of Wal-Mart, I would use the current political climate and take my store in a different direction.
Wal-Mart’s ability to give us low prices is based on its size and willingness to use foreign products, which can be manufactured in many second and third world nations for much cheaper than America can make the same product. By leveraging its size and its access to these incredibly inexpensive items, it can force local manufacturers into deals that then force those manufacturers to look at ways to lower their own costs—which usually winds up being downsizing or outsourcing. Either of these choices takes money away from both the American workers (they are out of a job) and the American economy (both through job-loss and trade inequities).
I would do the opposite. As head of Target (say), I would shift my store focus to using as many American company products as possible and trying to especially pursue those items made IN America. Those items that were not made in America, I would clearly label in my stores. I would then change my advertising focus to say, in essence, “Our prices are higher than Wal-Mart’s, but all of our products are made in America. We focus on things made in America by American workers and American companies.”
With the hot-bed issues of patriotism, nationalism, and the fear of outsourcing work offshore to other nations, I think this message would sell. If it does sell, the resulting purchases would help boost the American economy by keeping jobs and money inside the United States.
Unless America can figure out a way to replace the blue-collar jobs it is losing, Americans are looking at even leaner times ahead. As China, in particular, moves into the first-nation status and exerts more power in the global economy, America's economy will get weaker. Any nation or area that can take American jobs and do them cheaper and faster will get increasingly more work from companies looking to compete. The cycle will continue until we are, like many former world-leading nations in Europe, marginalized and forced to enter unions of nations to bolster our economic strength.
Or, we can do everything in our power to bring those nations along at an even faster clip. The faster those nation’s economies expand and grow, the more quickly they reach the same manufacturing costs as are in America and the prices stabilize and competition returns. But I don’t see that happening any time soon!
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As anybody who has ever read a book about economics knows, there is absolutely no sense in your thoughts. Spending money because of reasons such as patriotism creates a huge blast witch will collapse as soon as there is a change in the economic climate. (This is an emperic law).
ReplyDeleteWhile I respect your opinion, there are few things I need to point out: 1) I have read more than one book on economics and 2) what I'm saying here is only a first step toward both fighting the strength of a Wal-Mart (by suggesting an alternative way of marketing for one of its competitors) and to help bolster a flagging American economy (by trying to keep jobs in America). There are many more steps beyond these that would need to be taken to ensure long-term success (both for America and the company that takes this approach).
ReplyDeletePlease post a Comment with a link to your suggestions on how you would solve these problems so I can read and critique them. While I grant that mine may be too far to one side, maybe a real solution can be found somewhere in the middle?
It is a challenge to accept an anonymous allness response from an individual who does not realize that a "witch" rides a broom. Does the anonymous writer actually know the meaning of the word "emperic" used in the parenthetical add-on, or is (s)he using it to impress others with his/her "emperic" knowledge (based on one's own experience, rather than education and/or knowledge)? Some individuals do think for themselves and often develop theories that actually are outside the box of what's taught in the classroom, a process that often does not occur to those who adhere strictly to what the professor says. For that, I applaud John's thoughts and mental exploration of a complex situation for which, of course, there is no simple fix.
ReplyDeleteI'd really like to believe that a plan such as the one you propose would work, but I'm a little too cynical about what is important to people. For many years we've had the, Made in America/USA, campaign and I think it's success has been minimal. When money is tight each month you look after yourself and go for the lower price.
ReplyDeleteThere is a segment of the population who are politically or socially aware and will pay extra to maintain their integrity, but I don't think the segment is large enough to support a major discount chain like Target.
If I had a plan to save American jobs I would certainly give you a link to it. You've given me food for thought and I perhaps my brain (as a separate entity that I have no control over) will come up some ideas.