In a deflation environment, the strategy for business to be successful is :
1) Increase productivity by implementing advanced technology , i.e automation, yield
improvement, ....etc, so business will continue buying computers.
2) Mass production with low cost manufacturing, i.e increase efficiency and productivity,
at the same time take the big chunk of market shares.
3) Higher wage is not an issue, the issue is output per employee, the win win strategy is to have the lowest cost of manufacturing and higer output per employee.
To summarize: To be successful in a deflational environment
Take market shares together with low cost of manufacturing, increasing efficiency and
productivity. So, high salary, low living expense, higher living standard for everyone,
economy continues rolling in the growing path for a long long time. Now , it is time
for the FED to reduce rate !!!!!!!!!!!!!
CPQ's cost of doing business is very low, most of the manufacturings are contracted out
, and even the contractors take inventory , both materials and end systems for CPQ !!! |
