Rayong Thailand
I journeyed from Bangkok to Rayong yesterday. Rayong is an industrial city that is on the Gulf of Thailand and steadily growing.
Many find it surprising but 9 of the world's top 10 auto manufacturers now have plants in Rayong. It is referred to locally as "the Detroit of Southeast Asia". As the facilities continue to grow, employment has now risen to 25,000 people.
Look to Rayong to continue to grow as many look for I industrial port cities in the area.
S.A. Romeo
The Strategy Expert
Showing posts with label strategy. Show all posts
Showing posts with label strategy. Show all posts
Sunday, March 20, 2011
Saturday, March 12, 2011
Best Buy: Reinventing Itself, Yet Again
Best Buy: Reinventing Itself, Yet Again
It seems like just a short time ago that Circuit City, Best Buy's largest competitor went out of business, creating a huge opportunity for the company. A strategic analysis showed that Best Buy then sold 16 times the amount of electronics than its closest competitor, Wal-Mart, which allowed Best Buy to streamline operations and release much of it's store-level middle management positions.
But that was last year. This year, the strategic plan has been updated and Best Buy is following the trend of other major box stores by decreasing its footprint. This year's strategy includes 150 much smaller Best Buy mobile locations that will only sell smart phones.
Online sales and the real estate market are causing big box stores to change their strategic approach for 2011.
S.A. Romeo
The Strategy Expert
It seems like just a short time ago that Circuit City, Best Buy's largest competitor went out of business, creating a huge opportunity for the company. A strategic analysis showed that Best Buy then sold 16 times the amount of electronics than its closest competitor, Wal-Mart, which allowed Best Buy to streamline operations and release much of it's store-level middle management positions.
But that was last year. This year, the strategic plan has been updated and Best Buy is following the trend of other major box stores by decreasing its footprint. This year's strategy includes 150 much smaller Best Buy mobile locations that will only sell smart phones.
Online sales and the real estate market are causing big box stores to change their strategic approach for 2011.
S.A. Romeo
The Strategy Expert
Wednesday, March 2, 2011
Fly the Flexible Pricing Skies
Fly The Flexible Pricing Skies
Allegiant Air has sent a letter to the Department of Transportation floating the idea of offering a new strategy for airline pricing. The consumer would pay a base price and based upon the price of fuel at the time of travel, the final price would actually be higher or lower. The consumer would be offered the option of paying the regular fare or the new flexible fare.
Sound innovative? It is not a new idea, the charter industry already uses a similar approach. It is basically a strategy of pushing fuel hedging to the customer thus mitigating risk to the airlines associated with world events and the price of fuel.
Which would you rather buy, a set price ticket or one that may go up or down depending upon world events and fuel prices? What percentage of the buying public is likely to participate? If your company's financial policy is to select the lowest price, might that fit into this strategy?
We'll have to wait and see what the Dept. of Transportation thinks about this old strategy being used in a new way.
Allegiant Air has sent a letter to the Department of Transportation floating the idea of offering a new strategy for airline pricing. The consumer would pay a base price and based upon the price of fuel at the time of travel, the final price would actually be higher or lower. The consumer would be offered the option of paying the regular fare or the new flexible fare.
Sound innovative? It is not a new idea, the charter industry already uses a similar approach. It is basically a strategy of pushing fuel hedging to the customer thus mitigating risk to the airlines associated with world events and the price of fuel.
Which would you rather buy, a set price ticket or one that may go up or down depending upon world events and fuel prices? What percentage of the buying public is likely to participate? If your company's financial policy is to select the lowest price, might that fit into this strategy?
We'll have to wait and see what the Dept. of Transportation thinks about this old strategy being used in a new way.
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