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February 2013

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From:
Inge Hernefjord <[log in to unmask]>
Reply To:
TechNet E-Mail Forum <[log in to unmask]>, Inge Hernefjord <[log in to unmask]>
Date:
Fri, 8 Feb 2013 08:34:48 +0100
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I have read a little about how US electronic industries may survive the
avalanche of products from China. Most strategies don't give much hope to
those who are already hanging on the rope.  Furthermore, it seems clear,
that the old good days when USA was superior on electronics and flooded the
world with electronics, will never come back. Not even if the state gave
many billion dollars in help. It seems also as the authors of new
strategies do not care much of the many firms that fight for their lives.
Instead they write pages and pages using all the academic wonderland
affluence. I learned from the military, that your strategy shall be maximum
three words, or three orders, or three advice , because that's what the
medium soldier can keep i mind when he is involved in a battle. I tried to
find three such mainstreams, which may not at all be the best.


A.  Education
"Countries with weak science and mathematics education, and with a dearth
of R&D funding, will fall behind countries that prioritize these areas.
Similarly, countries that stay open to what the EIA calls “the brightest
foreign minds,” and that allow their companies to* recruit the best from
around the world*, will prosper, while those that seek to restrict highly
paid knowledge jobs to their own nationals will fall behind. "

B. Power of Seller
"The fight back will not be on american ground, but in the host
country/countries.
  American firms have increasingly relied upon global sourcing in order to
maintain flexibility in procurement. However, sourcing may be restricted by
local content
restrictions that may  increase the power of host country sellers. U.S.
firms have utilized
nonmarket strategies to lobby against these restrictions, and used
organizational strategies of
working with local firms to make the most of the situation. U.S. firms do
not have the benefits of
the * keiretsu* arrangement available to Japanese firms, but they have also
had to establish their
own suppliers in some host countries where none previously existed. *By
cultivating local
suppliers, U.S. firms will also increase the strength of the relationship*.
"

C. Power of Buyers
"   One of the keys to gaining market share in Asia for U.S. firms is to
leverage their superior marketing and financing capabilities to increase
the attractiveness of
American products and to provide consumers with additional buying power on
credit. A market
response has been to* establish a physical presence and personal contacts
in the host country*. On
the nonmarket side, U.S. firms have also tried to link to government
buyers, bid for government
contracts, and supply products for government procurement. The power of
buyers is relatively
balanced, given that American firms must also compete with domestic and
other foreign firms,
although in cases where U.S. firms provide highly-specialized, high-end
products, buyers have
fewer viable alternatives. This is especially true in the case of
client-server software, where U.S.
firms have strong first-mover and network advantages. "


What I miss reading these strategies is who cares about the millions
unemployed in the USA. Sounds to me as you will reinforce the elite
thinking and care less about ordinary citizens. Wish there was a broader
solution, but it may not be the best for the country as a whole.

Inge

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