Cost minimizing vs. market building strategies

Cost minimizing and market building strategies both have the same goal: make money. The two strategies go about gaining capital in opposite ways. Companies that follow the cost-minimizing strategy does not care about violating human rights. They exploit workers and hire those with the smallest salaries possible. They do exactly what the title is: they minimize costs. They cut any extra expenditures, including workers’ wages, and therefore can lower prices, allowing them to make the maximum amount of money. They set short-term goals for making the most money possible. Some companies that function in this way are Nike and Gap. They both have sweatshops in developing nations in which they exploit child workers. Market building strategies, on the other hand, typically think more long-term. They develop relationships with the country they are in and are more committed to helping both the people and the country. Johnson & Johnson is an example of a company that follows the market-building strategy. They have donated to tsunami relief efforts, given money to September 11 victims, and are working to reduce greenhouse gas emissions.