Cost of goods and services
One thing I think we may see with this reshoring trend will be an increase in cost of goods and services. The main reason for this cost increase would be simply to cover the increased production costs. Historically, manufacturing goods overseas meant producing goods cheaper because of the savings in employee wages and material cost. In the United States, the standard of living is much higher than most other countries, therefore workers demand (and are legally subject) to receive higher wages. Not only do employee wages get taken into consideration but the cost of those employees benefits and other incentives received from employers. Similarly to the demand for an increased minimum wage, the cost of living will rise and therefore “balance out” the increased wages. I am all for reshoring, but I do think people need to have an understanding of what to expect as possible outcomes from reshoring efforts.
How do you think others will embrace reshoring?
#8First Mover Advantages(Student)
The author explained some advantages regarding special strategies such as First Mover, when a company establish new market or develop new product before anyone else develop this product “some advantages of being a first mover include securing access to rare resources, gaining new knowledge of key factors and issues, and carving out market share and a position that is easy to defend and costly for rival firms to overtake” (David & David, 2017, p. 153). I think one of this common example is the Hybrid cars, when car manufactures realize the large benefits of finding new way that satisfy consumer by reducing the cost of fuel and trading unique products to the consumers, and once competitors found this opportunity is large investment, they establish adding hybrid system to their manufactured cars. I think first mover strategy must be examined along with all time of product life cycle, because just giving ideas to competitors will benefit the other companies on account the first mover.
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