Market Building Strategy vs.Cost Minimizing Strategy

A Market Building strategy is when a company and it’s employees both make a profit from products they sell. An example of this would be the Sony television company who are now making 3-D flat screen televisons and Apple Inc. These two companies and their employees both profit from ipods, macbooks, ipads, flat screens, 3-D dvds etc. A Cost Minimizing Strategy differs from a market building strategy because it only benefits the company and not its employees. An example of this would be in the 1980’s with General Electric. The company eliminated 275,000 manufacturing jobs in the U.S and opened plants in Mexico to manufacture the same products. The employees in Mexico were paid a lot less then those in the United States while the companies made the same amount of big profit from hard working employees in Mexico. Another example of A Cost Minimizing Strategy is major companies that used to have their own IT employees for computer support. Now most IT work is done in India. In no way, is a CMS a positive thing for citizens in other countries.