Market Building Strategy vs.Cost Minimizing Strategy

A market-building strategy and a cost minimizing strategy are two whole different concepts of running a business. A market-building strategy is much more of a long term project, where ethics and morals come into play. A market-building strategy usually pays their workers an acceptable salary while still generating a profit for their business. It takes longer to build a clientele and reach the target market using a market building strategy and also cost a lot of money to start. This is the main form of business in the U.S. because of all the labor laws, which is why ROI is so important because so much capital is necessary to start the business. A cost minimizing strategy is a popular strategy around the world where many laws that are enforced in the U.S. are not enforced. It is much easier to start a new cost minimizing strategizing business because not much capital is necessary. These businesses don't need large sums of money to market to their target audience, and they can catch their market simply by offering low prices on their products or services. They are able to do this by paying very low salaries to their employees and spending minimal amount on their infrastructure and business buildings. A market building strategy has a much better reputation and will usually succeed for a long time, especially since globalization will hopefully soon discard all unfair working regulations around the world. Cost minimizing strategies will derive a lot of profit for the owner, but exploits the employees and doesn't help much for the economy. Therefore, the cost minimizing strategy will not survive in the globalizing economy.