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Thursday, February 15, 2007

Crazy shceme to make profit

One of my favorite movie moments was when Greg Focker (Ben Stiller) in Meet the Parents is on the phone with the airline people after his suitcase was lost and they brought him the wrong suitcase. He said:

Yeah, you gave me the wrong suitcase. Uh-huh. Yes, it's a black Samsonite. Uh-huh. Ok, well don't you think that the Samsonite people, in some crazy scheme in order to make a profit, MADE MORE THAN ONE BLACK SUITCASE?

Its not massivley profound, but its true, the Samsonite people and almost every other company for that matter follow a simple rule, whether its writen in their business strategy or not, its more universal really: sell as much as you can in order to make as much profit as possible (so in a round about way you can blame our voracity for all those luggage mix ups).

Sunday, February 11, 2007

BRANDS "R" US

I'd like to kick this blog off in the Kalahari where brands and people collide. I’m thinking about how companies reflect people’s real nature. If you think of the Bushmen of Botswana and their struggle against diamond mining companies (like De Beers) for land, it’s clear that there is a strong demand for diamonds in the world market even from people firmly against ‘native people abuse’. Where there is a market and money to be made you can be sure that there is an industry or a company or an oilrig extracting that value (entrepreneurs everywhere are working on the unharnessed gaps).

Not only do we control the demand side but companies are owned by people too, from the ultra wealthy with a controlling share to the small time investor with a meagre share portfolio; or even indirectly through something like your pension. When we invest, our money doesn't go to some abstract financial realm but to someone who spends it; we lend them money hoping they will bring good returns. With that money they pay their suppliers, buy their stationary and run their business.

Companies serve people; they are run by people; they are owned by people and operate in people’s interests. Companies are the symptom of the human drive; they are just like us in that they are self serving, goal orientated, biased, corrupt but also intelligent, dynamic and unique.

I met an elderly couple that are quite unhappy with the state of the world, they blame 'the companies'. Many people like them believe that “The corporations are out to screw us”, but actually they are us, well not us, they are people, just other people.

The world has taken the shape of a zero sum game. Everyone is jostling to get ahead with the limited resources we have and the best weapons come in brand form.

Capitalism is like musical chairs in a way; there are enough chairs (resources or wealth) to go around because everyone doesn't need to sit at the same time, but because everyone is aware that there aren’t enough we become quite set on having one even if you don’t feel like sitting.