09/22/2005: Thought for the Day:
The United States has lost its manufacturing edge to China. But we still have a massive competitive advantage in sales and marketing, no matter what the cost differential between the two countries. The United States, after all, is where modern advertising, marketing, and brands were invented. And that is precisely why smart Chinese companies are interested in buying U.S. companies. Lenovo didn't want IBM's personal-computer business for its manufacturing processes. The Chinese computer market wanted the unit for its American management, its strength in finance, marketing, and sales.
Today, companies from wealthier countries outsource production to China to compete effectively in a global market. But we may increasingly find that Chinese companies have to outsource sales, public relations, and advertising back to us.
Len on 09.22.05 @ 06:22 AM CST