New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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From: Arthur Tang	12/2/2006 5:36:54 AM
	of 435

Before 1929, the concept of obsolescence and replacement was not known. MIT president Alfred P. Sloan of the sloan business school fame went to work for GM. To stabilize GM, Sloan had to come up with three year cycle of major styling change, and minor trim upgrade each year. The theory of obsolescence and replacement economy was born. Lately, GM extended three year styling major change to ten years and their fortunes dwindled. Fringe benefits may cost plenty, but lack of styling change sells less cars. 60% market share went below 30%. Having less marques(oldsmobile demised) hurt too. Having less dealers hurts even more. But, more new products and dealers will fix the current softlanding situation. Kerkorian has his own problems at MGM casino, too old and worn out, need obsolescence and replacement himself. When the economy went soft, market share is created by new products. Housing market for the rich has not gone sour. It just needed more innovative architects to make less maintainence a design principle. For low cost housing(duplex), multiple tennant occupancy will make rental stay within 1/4 of monthly income. New building plans had to be drawn to spice up the housing market ASAP.

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