The other day it struck us. Yes we had an epiphany to the extent of cost cutting that is rampant in all areas of production, manufacturing, and retailing.
We have often made reference to Power Point pilots, and spreadsheet jockeys in the processes of saving money, and cutting costs.
In the auto industry, one supplier cuts costs, the component is subsequently sub par, and a myriad of manufacturers initiate recalls. Yes...they are all using the same component, from the same supplier.
Lets assemble vehicles "somewhere" (ideally with low labor costs), lets cooperate with a plant that builds components for a few manufacturers (to save money) while creating an optic that its all separate, and all independently trained. Agreed many of these initiatives are empowered by technology, and were a mere figments of the imagination a few years ago.
Go to any retailer, prices are either up, and/or quality is down to control costs. Lets not even talk about the service that is provided my a myriad of retailers.
The value equation is a constantly moving target. Understanding the value received for the funds that are used is increasingly challenging.
Do we have to say that the "brand value" is inexorably becoming a "ball of grey" as it constantly morphs from one cost cutting vector to another in the ongoing effort to bolster the bottom line.
Is it a surprise for the consumer to gravitate towards the lowest cost denominator since its all a complex ball of grey.
What do you think?