Tuesday, October 11, 2011

Market Building Strategy vs. Cost Minimizing Strategy

Although the two terms are often paired, there is a major difference between the two. Cost minimizing strategies for the most part involve the violation of Human Rights and harsh working environment conditions such as; low wages, unsanitary working place, and lack of freedom within the working place. Companies try to market themselves with commercials and advertisements that display high-end characteristics in their products. The fact of the matter is that everyone in this day wants money, at this point not many company owners really care what happens as long as they are making large amounts of money while spending little. For example, companies have sweatshops in many less fortunate countries, employing women, and children forcing them to work long hours for less than minimum wages. Why is this happening? Because, nobody is going to go hunting around in other countries seeking out sweatshops to bust major corporations. Unless serious attention is payed to this global issue, there is no doubt in my mind that Human Rights violations won't stop or slow in the working place anytime soon. As far as Market Building strategies go, companies like Nike advertise themselves and most people think nothing other than nice shoes, and apparel are associated with the company. But, in reality, for all any of us know there are Nike sweatshops around the world.

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