Gas Prices And Differentiation

Everyone wants to know why are gas prices so high?  The “oil industry” says it is all about supply and demand.  Of course if that was the case, then profits should not be at ridiculous levels.   Make no mistake, I am a capitalist and I believe in our economic system.   So, why $3.50 per gallon?   If it is based upon commodity pricing like milk then it does ring true…  but in that environment, the oil Companies are basically charging what the traffic will  bear.

 So, what is the “average” consumer to do?   Try the discount gas stations…. I like Costco or Stop & Shop….  I saw a TV show which says the gas is just as good as the “name brands.”   AND, they are discounted by at least $.20+ per gallon.   This is a classic case of differentiation in the marketplace.  Why pay more for Mobil, Exxon, Amoco, BP?  Especially if the gas is fundamentally the same.  

And, by the way, if the issue is refinery capacity, and better gas milage for our cars why is it taking us so long to figure those things out?   Is this America?

Just one man’s views!

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Chrysler

It is a sad commentary on our times that Chrysler, once a proud American auto company, will be shortly owned by a private capital company.   I believe it is a reflection of our entire auto industry, once dominate the world over and now in many cases second rate.   What happened to this American industry?  Remember the saying as GM goes so goes the American economy?  Is it now as Toyota goes so goes the American economy? 

While America leads in so many areas of technology and innovation, what happened in the auto industry that got us to this point, and, more importantly, what can be done to get this industry on track?    Many people blame the unions and their contracts which call for significant health care and retirement benefits.   Labor costs reported to be $30 more per hour for an American auto worker then their foreign counterparts reflects these and other costs.  But I can’t believe that with American ingenuity we can’t figure out how to be more productive.   I also can’t believe we can not build superior cars.  I am not suggesting this is easy.   I am suggesting that the Chrysler acquisition might be just what the doctor ordered to shake up this industry in the US and get the “big 3″ to really seek dramatic changes in how and what they deliver to the marketplace to compete.

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Everything Cell Phones… Part 2

Did you hear that the government wants to embed in our cell phones devices which will detect hazardous materials such as poison gas and potentially radioactivity?   Talk about taking our cell phones to the next level!  So, perhaps the predictions of the cell phone being the one device that does literally everything is not far off!

Of course, “arming” the population with cell phones that detect gas or other hazardous material is one way of involving the entire population in our constant vigilance over terrorism.  What would you do if your cell phone suddenly came “alive” and notified you that you were in an area of hazardous material? 

Given the above, and the current surge of providing TV on your cell phones, how far away can we be from the items mentioned in my last post (unlocking and starting your car, paying for anything and everything, advertising messages in store, etc.)?

Rich

Bizvice:   Business Strategy, Marketing & Entrepreneurship

“Everything” Cell Phones

Many people in the tech industry are predicting that our cell phones will be the device that connects us to everything.  It appears to be happening in Asia more quickly then the US.  For example, why not use your cell phone as a key to your house, hotel room, etc.?  Certainly using it as a credit card would seem to be no problem.  What if you were walking down the isle at the supermarket, and you pointed it at a product and the cell phone extolled the virtues of that product?   What if the supermarket itself, provided its “discounts” over the cell as you travelled the store?

This will all happen and more.  It will make us tethered to our cell phones like never before.  Open your car door?  Sure!  Start the engine?  Sure!  Buy a hamburger?  Of course!  This is all quite interesting and adds to music, videos, e-mail, GPS systems, etc….  So, I ask, why do we need computers????

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship