Schüler-Talk.de

Comment: Markets are people, not products

Markets are customer-orientated because companies want to sell their products. Companies do that and are required to do that because of the competition to secure their existence and to make a profit. Nowadays companies are shareholder-orientated and the main objectives are to make more and more profit to content the shareholders and it doesn’t matter how.

Due to that fact companies are interested in reducing costs. A big portion of costs are often the labor costs. Companies search for possibilities to cut these costs and nowadays there are possibilities. Productions centers are closed in Germany in are built up in low-wage countries with the consequence that people in Germany are getting unemployed but what counts are the costs not the people. Nowadays companies also outsource parts of a company, if somebody on the market can do special things cheaper than the company.

Globalization has made the world increasingly interconnected and promotes this development. Low-wage countries fight for western countries to settle down in one country and these countries fight the race to the bottom. People in those countries work hard for very low wages under bad labour conditions. Western companies accept this fact because they are only interested in costs, as long as the society at large is not interested.

The costumers also promote this development. Customers are often only interested in low prices. Companies want to win the competition and want to be the first choice of the costumer with the consequence to contend for the lowest price. Hence they have to reduce their costs. This implies markets are people-orientated, when we think of people as customers. Thus markets are product rather than people orientated.


DANKE!:)