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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?


To: Arthur Tang who wrote (241)8/30/2000 5:17:48 PM
From: Arthur Tang  Read Replies (1) | Respond to of 435
 
Planned economy for next year will be $14 trillion, up from $12 trillion this year?

Where is the extra growth coming from? This year thanks to the new automobile design "crossover", 17.5 million cars are built and sold. Next year, the growth will still be coming from productivity. Profits from productivity has been plough back to internet ventures. Compaq for instance had 60% of sales recorded on their direct sales web site. Dell and Cisco all generated good sales on web presence. Dell invested their profits on other venture and made $3 billion profit there. Intel also was very actively investing in venture beyond their own expertise. Made billions more too.

The direct sale model has tremendous untapped efficiency and productivity. With money invested wisely, paperless operation is a cinch to operate. Net commerce with consumers however, is still a struggle. New technology of smart partnering, broad bandwidth capacity, superscaling database, and diversification of contents to attract more customers will mature next year to change the retail presence on the internet.

If you think that these alone are planned. Wait until the obsolescence and replacement program kicks in. More apparel designs for dressy looks. More vertically integrated recipe for frozen foods and cans will be introduced with spices packaged for addition later. Appliances with more DSP computer and possibly internet controls by timed programing.

Who knows what Greenspan will bring to the party? But for every dollar of profit re-invested, $9 will appear in the economy. $210 billion profit will be re-invested next year. Did I forget to mention the ASP application service providers letting corporations sell their internal operations(this is where the extra profits come from to make up the difference from $80 billion this year to $210 billion next year) then lease back by outsourcing.

Good luck, we will need it to execute all of it right.