Showing posts with label free market. Show all posts
Showing posts with label free market. Show all posts

Monday, September 21, 2020

The Elements of Success: How to move towards your goal

 

     There are a number of popular speakers who currently say that "anyone can be a success -- it is all up to them". Well, that is partially true. The way I divide it (others may have their own lists) it is about 1/3 true.

     I see five primary factors in obtaining a goal (which I will further use rather than "success" -- which is very subjective). These are:

  • Opportunity. You have to have the possibility of moving the direction you want to move. Although one can think of technological workarounds, it is extraordinarily difficult for a blind person to paint a picture. Beethoven composed while becoming deaf -- but he was not born deaf. In the 1967 Boston Marathon, Kathrine Switzer met all of the requirements for running the race but was prevented from completing it by a judge who did not want women participating. I always wanted to be a moon or Mars colonist. At 62, I would say that opportunity is now very unlikely.

  • Support. Occasionally, a rare individual will have sufficient self-motivation (and luck) to move towards their goal without any external help. All cheers to them. Generally, people need psychological and monetary support to make it towards their goals.

    A student with a family who values academics highly has a much easier road than one who, perhaps, has a single parent who works three jobs to support the family and -- although they have no dislike of the child doing well in school -- do not have the time, energy, or personal history to support the child. Sometimes, it is negative support -- "they never had it, did it, were able to do it -- why should the child have that possibility?" Sometimes you have that treasured teacher or friend or relative who provides enough positive energy to jump-start the process.

    Money is a resource that makes a difference. You can buy a cow. You can buy paints and canvas, You can afford the tuition and ability to attend the school of your choice. You can afford clothing that allows you to present the image that people consider to be of the right "class".

  • Talent. All people, in my opinion, have equal value in their lives as people. That does not mean that all people are identical. Some people have perfect pitch. Others are tone deaf. Some people have the light bone structure and hips of a long-distance runner. Others may not even be able to walk. Some people do well on academic tests (we often call this "IQ") and some do not. Some people can easily interact with, and help people to trust and work with, other people (and other factors of "Emotional Intelligence"). Others find it difficult to speak to another person. Some can look at a piece of equipment and understand its workings immediately and be able to take it apart, repair it, and reassemble it. Others should be kept away from all breakable objects. Almost every person has a talent, even if that talent is not universally acknowledged and valued, but the person needs to have that specific talent (or talents) that will take them towards their personal goal.

  • Effort. If you are allowed to do it, have support in doing it, and have adequate talent to do it -- you STILL have to DO it. Need to save money? Budget tightly and do such. Want to get that college degree with a high GPA? Forego other efforts and focus enough time and energy to get it done (assuming opportunity, support, and adequate intellectual talent). Want to complete a 4-minute mile in running? Assuming your body has the possibility, train, train, train. Want to have your own business? Put the plan together and strive towards it. Fail? Pick yourself up, learn from your mistakes, and keep trying. You have written the "great international novel"? The 40th literary agent just refused to promote it. Try the 41st, self-publish (along with immense self-advertising and promotion), convince a newspaper to publish it as a daily column (many of Dickens' books came about that way (called a "serial novel") - even some of Alexander McCall Smith's books in modern times).

  • Luck. I define luck as the result of factors not even theoretically under your control. It can be good luck which enhances your efforts or bad luck which diminishes them. A traffic jam occurs on your way to an audition. The lead actor really does "break a leg" and you are able to perform as stand-in. The person that you meet in an elevator just happens to be an agent who is looking for a book on the very same subject of your book.

     Opportunity, support, talent, effort, and luck. So, when someone says "anyone can be a success -- it is all up to them" they are right -- in a narrowly defined way. Factors can make it very difficult or very easy to achieve that "success". Compare a person who is 3 feet from a finish line, on a smooth track, in a race while another person has to run 100 yards, jumping over hurdles, avoiding land mines and angry dogs to reach that same finish line. Can they do it? It is still possible but odds diminish rapidly.

     Those who have achieved a goal sometimes achieve it with unawareness, or forgetfulness, of all the factors that got them to that goal. (Some ARE aware and do their best to facilitate others to have an easier path.) They talk to others and say "I did it -- you can". That is true but it does not present the entire picture. Each person has their own path to reach their goal. Some paths are easy and some are horrendously difficult.

Monday, November 19, 2018

Competition -- the good, bad, and the ugly


     Competition exists in all aspects of our lives. Sometimes it is not obvious -- which apple looks the best to eat? Do I like the green shirt or the red one? What is my favorite subject in school? Choices involve competition even if the things among which one must choose are not actively competing against each other. In these cases, the choice is usually made by our subconscious acting from our personal histories.
     Competition can be eliminated via monopolies -- either regulated or unregulated. An unregulated monopoly is the only source and it can disperse it's products in any way, and at any price, at any usable quality. A regulated monopoly provides the only source but there are outside agencies that determine the parameters of its ability to sell -- quality, price, availability.
      Even if there are two or more sources for a product, competition can be avoided if the sources make agreements between themselves about conditions of each of their production and distribution. Splitting the market, agreeing on certain lower limits on price, active sharing of research, and so forth can give an appearance of competition while the reality is just that the market is shared to enable all sources to maximize their profits.
     If a product is not wanted, there can be no competition. Of course, most new products start as an unwanted entity in a condition of unregulated monopoly. They now have to persuade people that they want or need the product. This establishes the market and the introducing source can take advantage of their situation to establish their association with the product. Once the market has been established, then competition will appear (unless squashed by the introducing, or largest, company -- suppressing competition legally or illegally).
     Each source for a competing product (and the product can be merchandise, services, political candidates, locations, or any other item from which one must make a choice) wants to persuade the buyer that they have the "best" product.  Advertising and marketing attempt to create a specific positive perception -- which may, or may not, be in agreement with measurable, and verifiable, qualities.
     The grand prize for an advertising/marketing division is to establish a brand such that people will choose according to the brand and only minimally (or not at all) evaluate the qualities of the products. On the scales of evaluation, a positive brand image is a heavy weight on the side of choosing that sources products. This can be reasonable, as brands are established by satisfying people with products on a consistent basis. However, if the brand becomes the only criterion, there is no longer any need of any positive qualities. Eventually, a product that has only brand recognition and is a poor product will lose its brand reputation and effectively have to start over within the market.
     During the phase of true competition (no brand loyalty, no monopolies, required by the consumers) between two or more sources, competition can achieve continuous improvement of the products. One source "wins" and the other examines the reasons and improves their product to the point where they start "winning" and then the OTHER source starts improving their product. Once again, this can apply to many different products -- social and business. So, during this phase, there may be a "lesser evil" or "less bad" but making a choice towards that direction still continuously improves the choices from all sources.

Saturday, June 24, 2017

Comparison shopping: When no choice seems to be a good one.


     I am a consumer. I admit it. I also try to make conscious choices -- picking products from companies that are less harsh to the earth, that work constructively with their employees rather than against them, and so forth. These are characteristics of the companies that are important to me that lead me to consider products in the first place.

     But, beyond that, I want to pick the product that seems to be the "best" to me. In order to do that, I need to understand what qualities I want, or feel that I need. Once I understand that, I check reviews and product comparisons to see what products best match to my desires. It is a logical process but it can drive people around me totally nuts if this is not the way they approach purchasing items. (The way they approach evaluations also drives me nuts -- it is an equal opportunity situation 😄 )

     In what is referred to as a "free market" situation, it is possible to make decisions solely upon the perceived qualities of a product. Qualities can include appearance, durability, price, features, societal responsibility, and so forth. Note that the perception is what counts. If a societal section decides that orange is the most beautiful color for eyeglasses then that is it. If a tall person is looking for a car then the head and leg room of the driver's seat area will be of great importance and value. If a short person is looking then they will consider a completely different selection of cars based upon their own needs -- probably for seat adjustment and ease of access to hand and foot controls. Each person has different needs and, thus, different sets of qualities.

     Some qualities should be more objective. A new tire with a lifetime of 50,000 miles should be considered to have better wear than another tire that has a lifetime of 20,000 miles. Of course, there may be other qualities that are more important than lifetime -- such as the ability to handle wet roads in Seattle (which may be of no interest in the Sahara).

     But what happens when you have only two choices of tires -- one that has a lifetime of 20,000 miles and one that has a lifetime of 15,000? All other qualities equal, people choose the tires that last 20,000 and the manufacturer of the 15,000 mile tire goes back to their labs and tries to develop a tire that lasts 25,000 miles. This is called constructive competition. The end result of such competition is the development of better products and lower prices for consumers. This is the ideal situation for the consumer.

     What happens when there is only ONE (1) supplier of tires for a region? They sell 20,000 mile tires for a while and then they decide to start selling the 20,000 mile tires for a higher price and selling a 15,000 mile tire for the same price as they used to get for the 20,000 mile tire. This is called a monopoly situation and is not a good one for the consumer or the quality of products. Monopolies can either be established by "natural" restriction of access to resources (all of the widgets are found only in areas controlled by a company) or by economic leverage (all of the competitors are under-priced until they go out of business or are purchased by the larger company). Laws can be created to control this situation to improve the situation for the consumer and for the improving qualities of the product -- but sometimes no laws are created and the monopoly continues to exist and degrade quality and inflate prices.

     By definition, there cannot be a monopoly with more than one company in active competition. But there can be private agreements between two or more companies that allow both, or all, to expand their profits at the expense of the consumers and which produce no constructive competition. This group of two or more companies can be called a "cartel". Although no single company within the group is a monopoly, they are able to control access to resources and to the consumers so that other companies that are not part of the cartel cannot compete. Laws can be devised to restrict this but they are much more difficult to monitor and enforce -- and, once again, it is possible that no law will be created.

     Finally, it is also to the advantage of each company to restrict comparisons. This can be done by restriction of the movement of information (control of media access, for example). It can also be done by creating "brand loyalty" -- such that the consumers directly identify with the product of the company rather than the qualities of the product. With sufficient brand loyalty, a company has a base of consumers for which it needs to provide neither quality nor value.

     So, on to the title of the blog. What happens when no choice seems to be a good one? In a free market situation new companies will arise if adequate constructive competition does not take place among existing companies. Old companies die away if they cannot maintain satisfaction of their consumer base. This can only happen in a truly free market and a truly free market can only exist with regulation and supervision. Otherwise, monopolies, cartels, and other restrictions penalize the consumers and the quality of the products in favor of the profits of the companies.

     I used tires as an example of a product. In reality, anything that people choose (or do NOT choose) is a product. This may include political candidates, or services (education, for example), or resources (water, for example), as well as manufactured products. Within any product marketing situation the free market allows consumers the best options. Giving the illusion of a free market while actually controlling the choices of the consumer favors the producers. It is a continual struggle as the needs of each are weighed against each other.

Corporate Media: Just what in the world is meant by corporate media?

     When you hear discussion about virtually anything, you may very well encounter the term “corporate media”? What does that mean? Is it i...