Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Jan 22, 2009

Compete or Perish in the Heated Global Competition

Filed under: Economy — admin @ 11:22 am

I just learned last week that the Circuit City, the 60-year-old grandfather electronics chain was going to liquidate its whatever unsold goods it still has, then close all 567 stores. No doubt there will be a large army of layoffs, at least 30K as I learned later.

It was pretty sad seeing my favorite hangout is going to close. This is actually expected. I like the store because there are not many customers, to be exact, having more well-dressed and well-groomed sales boys than customers, because the price is never competitive, though the service is of good quality. It is kind of natural to see the store with least ability to compete in today’s market going out of business first. Only good quality won’t keep the store alive. So sad!

The Circuit City store also reveals the consumption behavior of US government and a typical American family — spending beyond its means and living off borrowed money — the practice stands in sharp contrast to China who has tries to save and lend out money to countries like USA.

From the demise of Circuit City, I would think in today’s global economy, no ability to compete is the sure ticket to exit out of the scene, regardless of where you are and what you engage. Relentless but true. What shall we say to our children? “The answer, my friend, is blowing in the wind…” It’s better to leave the question to our readers.

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