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Non-Tech : FTL- Fruit of the Loom -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (125)	8/15/2001 11:31:55 AM
From: Clement	Read Replies (1) \| Respond to of 161

Arthur: Read a little closer. I'm not saying you're stupid, I was saying your idea for "bikinis" for men and women that would apparently "sell like hot cakes" is stupid, not to mention utterly ridiculous. > if FTL does not understand obsolescence and replacement > theory pioneered by General Motors Your business theories are only a segment of how one can make money. You're right in a sense that profits come from creating new ideas and concepts -- but you have to broaden that definition a little. Innovation can also come from manufacturing, for operational efficiency. Operational efficiency is not sustainable in itself as a competitive advantage -- but FTL has more than the potential reduce their manufacturing costs -- they have a very significant brand name. There are many companies that make a lot of money making very baseline products in stable industries. Look at Gildan for instance -- I pointed that one out to you some time ago. They are highly profitable in an underperforming segment, and yet, they do not do anything particularly innovative to their product. FTL did a lot of operational things wrong. But their death knell (or so they claim) is that they bought other companies like Gitano, etc. that they had not experience in, and lost considerable capital in trying to build. Worse still, they borrowed a lot of money to buy those companies! And now you suggest that they get into high margin lines like bikinis because apparently they will replace other forms of underwear? On a logical basis, you are completely out to lunch -- Fruit of the Loom has no hope of selling that many bikinis in order to satisfy their capital constraints -- in a line of business in which they have no core capabilities! I will say however, the use of new fabrics might be an idea to increase margins -- but radical new lines is just absurd since that is what got them into this trouble in the first place. Clement