Business Growth or Layoffs

Whenever a company faces financial trouble, the top executives decide to cut jobs to save the company. In the last eight years there have been massive lay-offs in every industry. There are companies who are faced with the tough question "Layoffs" or "Growth". In some instances layoffs do make sense; however, the growth strategy might be a better option for many U.S companies. Instead of getting rid of employees, companies need to find innovative ways to keep their workers employed. Sharing ideas and developing new products will help both the employer and employees. With globalization of world economy and the availability of inexpensive labor from China and India, it’s very difficult for American companies to compete on price. The companies need to focus on quality and differentiation.

The economic power has shifted from the U.S to the developing countries. These developing countries present enormous opportunities for the companies based in United States. Technology sector has seen a tremendous growth in the developing countries; however, there is still sufficient room for more companies to enter and gain a market share. For instance, there are many businesses that provide fleet management services in order to better manage the logistics of bigger corporation. There is a lot of competition for this kind of service in U.S; however, the consumers in the developing countries are not aware of the concept. It’s a perfect opportunity for U.S based firms to enter the market and introduce the product in the developing countries such as Morocco, Sri-Lanka, and Indonesia.

It’s true that the technology may already exist in these countries but the competition will be minimal. American products are known all over the world for their superior quality. Young Japanese individuals adore American products and many clothing companies have marketed their products to the younger segment with great success. In order to make our economy grow we need to focus on innovation, quality, and service. Many products that are in the maturity or even the decline stage of the product life cycle in United States can be marketed in a market like India, where these products are in the introductory stage. India has a huge population, mostly is middle or lower class.

Middle-income consumers present an immense opportunity for the U.S companies. Middle-income consumers are mostly those individuals who want to be part of the upper class; however, the limited resources don’t allow them to fulfill their dreams. The companies can direct their marketing efforts to this enormous group of consumers who will buy downgraded products of a superior brand. German based company Volkswagen has already benefited from its famous VW Bug in the Mexican market. The German company realized that the original VW Bug could be sold to Mexican consumers for a cheaper price by not putting any extra features in the car. There are many households in India who cannot purchase a color TV. There are lots of companies who are selling black and white TV’s in India thus resulting in excellent profits. What might be obsolete in one country may be a new product in other countries.

India is a large market with huge potential. There are lots of people in India who don’t care about the most sophisticated technology, and are pleased with basic goods. Companies need to reengineer their products and sell them with basic capabilities.

In conclusion we can safely state that layoffs is not the solution for our economy. Innovation, quality, and service are the traits that will help us in our descending economy. With the globalization of the economy it’s secure to state that no business is secluded from competition. If the rivalry is not from the locals, then it might be from international market. The key to success in the global marketplace is the ability to recognize the opportunities around the world and then take advantage of those prospects.