Wednesday, July 3, 2024

Why do investors still flock to retailing business despite thin margins and risks?

Every generation needs a revolution - an entrepreneurial revolution

One wonders at sudden surge in investment in retailing business.  There are Dali and Save branching out furiously aside from 7-11 and Alfa Mart.   I have former employee having a new retailing outlet and now putting up a second one.

We had a small grocery before but we excited this because of :  1.  paper thin margins.    2.  inventory shrinkage from shoplifting and inside theft.   3 stiff competition who undersell you.   Thats the strategy of a huge retailing firm, they undersell you at a loss and then  resume normal prices when you have closed.

Thats the same phenomenon say at USA where new civil rights embolden thieves and looters.   Thus retailers are leaving NYC. Chicago and San Francisco in droves.   

What do they see that we  dont?

Will you invest in retailing business

Dali Reports P1.88 billion loss  (Dali is discount retailer which is funded by ADB)  They are every where.  In our municipality, they have 3 outlets.  








Tuesday, July 2, 2024

Nothing is forever - the end of Panasonic

Every generation needs a revolution - an entrepreneurial revolution

Nothing is forever.    Panasonic, National was thought to be forever -  manufacturing a wide range of products for the house.  They had plants all over the world, and hundreds of thousands of employees.

Matsushita was a model for business philosophy and management.   Matsushita was a business model/icon.

But lately, Panasonic, National fell into bad times and is on brink of bankruptcy.

What did they do wrong?  It started in 1989 when founder Matsushita died

1.  They forgot experimenting
2   They stopped marketing
 


The truth about fake Be Rich Gurus - they are fake!

Every generation needs a revolution - an entrepreneurial revolution

I taught in GSB and I have academician colleagues ie professors who have not run a business nor worked in a business situation much less have tried using a spade to gather soil or sand.   Yet they have read a lot in business.

And yet are very erudite in teaching what to what not to to business school students.   How can they really tell them and inspire them when in fact they have not experienced actual business. 

With raised head, I can say I have been through this all -  the ups and downs and the difficulties and the hard realities of setting up and running a business.   

And yet there was this head of the GSB who hired academicians and drove the professionals away.  I heard he is no longer running the GSB