2011年4月4日星期一

If you are like most people

If you are like most people, it is that you assumed that your business model and ways of operating Nike Shox Cheap,should be unchanged. Change that business model, and costs suddenly become redundant in all sorts of unexpected places.

For instance, when a business goes from full service to self-service, the number of service-providing employees predictably drops. Without changing that model, it might have been a disaster to reduce the number of service-providing employees. 

Few are reluctant to reduce costs except when the human price is high in terms of cutting jobs or making working conditions less tolerable. At the same time, few are excited about seeking out ways to lower costs levels.

To many, this activity is like doing another fire drill when there seems little likelihood of a future fire. In addition, finding new, large cost reductions is often a more difficult task than locating more benefits at the current price or creating new price structures that stimulate demand. In part, this is because costs are always scrutinized, so there are fewer stones to turn over for the first time. In part, the difficulty ties back to misconceptions about how to find large cost reductions.

In addition, focusing on the current business model as the context for reducing costs is like looking for Nike Shox Turbo dark-colored items wearing dark glasses on a moonless night. You won't see most of the possibilities.

Despite all the attention that cost reduction seems to receive, it is clear that normal cost reductions rarely cause a company to gain much ground on the industry's low-cost leader. So most of the announcements you read about companies slashing costs amount to running on a squirrel cage of speeding shifts in industry practices. After lots of painful hard work, companies usually end up staying in the same Nike Shox Deliver,cost position relative to competitors as they were a year before.

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