Market-Building Strategy vs. Cost-Minimizing Strategy

          Companies are established on the foundation of a strategy that directs the outlook of their business in terms of influences and profit. A market-building strategy is one that will encourage a company to consider methods of gaining future profit while retaining agreeable and just conditions for its employees rather than operating to maximize current profit at the risk of abusing its workers. Businesses using this strategy typically invest more resources than do those running under a cost-minimizing strategy, wherein lies the appeal to some entrepreneurs, yet they are able to establish a fair practice of human rights. A cost-minimizing strategy promotes a business to achieve high profit from cheaply made products by underpaid workers. Companies implement this strategy to develop a workforce whose human rights are typically abused to allow cut backs on labor expenditures while maximizing revenue for corporate heads. A sweatshop in China that requires more than eight hours of work six out of seven days a week, has no safety regulations and pays below minimum wage to produce globally sold products would exemplify a radical side of this strategy.