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Will China’s Growth Be Hurt by Low Wages in Egypt?
For decades China was the low cost leader on cheap labor, and with few regulations and for a little extra on the side, with the right Chinese partner a company could make a killing manufacturing its products there. Many folks, especially union workers in the first world nation watched as their jobs migrated, along with the factories. Corporations could now hedge against onerous over regulation, and hostile unions, which often worked together to cause companies to serve their will, rather than that of the consumers, shareholders, or company.
Intended Consequences? The Price Wedge – Books, Prices, and the Battle For the InternetWelcome to the slippery slope of competing on price. Walmart is the “category killer” on everything from baby formula to tires. Walmart and Amazon are built from the ground up to support the business discipline of low cost leadership. Only a few companies in any space can create enough volume to remain competitive. The complex combination of attributes that combine into a unique selling proposition must continuously be shaped and prodded to create more value.