5 ms·

Any supplier who could actually sell right now would be able to take advantage of this market and build serious market share. So it’s a company with these reser

by mlac 5y ago

Any supplier who could actually sell right now would be able to take advantage of this market and build serious market share. So it’s a company with these reserves that will do well in a similar situation.

est31 5y ago
It might do well in these crises, but if it can't survive the times where everything works well, then it doesn't help.
- mlac 5y ago
  That’s fair, but I think we will see a swing to vertically integrated supply chains to address some of this risk.
  - OneTimePetes 5y ago
    We already have, its just not visible. Those who had stockpiles of chips (Toyota, many other japanese companies affected by the 2011 tsunami) were able to supply and provide products, thus taking market share - or sell chips at a larger price as demand sored. This strategy of holding strategic reserves on premium goods already paid for itself. Similar to that, the scalpers - horders of rare/in demand products fullfill that job in capitalism - at the risk of sitting on a pile of lowprice good.
    - mlac 5y ago
      We are going to see a bullwhip effect [1], it's just where and when it happens. I heard two things this morning about more car shortages (due to chips), Manheim auto auction has had extremely low volume this year, cars going at auction for more than they sold at retail 3 years ago. Some of this I think is sticky (I don't see new car dealers lowering their prices or being willing to negotiate quickly), others though I think will have a drop as inventory picks up. Sell high buy low. I just don't know what to sell at the moment. [1] https://en.wikipedia.org/wiki/Bullwhip_effect https://en.wikipedia.org/wiki/Bullwhip_effect
- tablespoon 5y ago
  >> Any supplier who could actually sell right now would be able to take advantage of this market and build serious market share. So it’s a company with these reserves that will do well in a similar situation. > It might do well in these crises, but if it can't survive the times where everything works well, then it doesn't help. See also: all the new US N95 respirator manufacturers that popped up during the pandemic. Now they're laying off most of their staff and most will likely go bankrupt, because their customers went back to buying cheaper Chinese masks as soon as they could.
jtbayly 5y ago
That’s only assuming they are allowed to raise prices without being sued for price gouging.
- mlac 5y ago
  They don’t even need to raise prices necessarily to a gouging level - they can just sell product while others can’t. Build brand loyalty, take market share.
  - mrob 5y ago
    Just selling products while others can't isn't enough to pay for the cost of the inefficiency when there's no crisis.
mrkstu 5y ago
Hence Apple thriving, and likely continuing to take market share.
- hiram112 5y ago
  I read a few articles in the past year, since supply issues first began showing up, praising both Apple and Toyota for being less reliant on supply chains out of their complete control. In the last week, I've read several more doomsday articles like this one warning us it's going to get worse before it gets better, and both Apple and Toyota have been mentioned as now having to delay releases or scale back sales targets.

by mlac 5y ago

est31 5y ago

It might do well in these crises, but if it can't survive the times where everything works well, then it doesn't help.

mlac 5y ago
That’s fair, but I think we will see a swing to vertically integrated supply chains to address some of this risk.
- OneTimePetes 5y ago
  We already have, its just not visible. Those who had stockpiles of chips (Toyota, many other japanese companies affected by the 2011 tsunami) were able to supply and provide products, thus taking market share - or sell chips at a larger price as demand sored. This strategy of holding strategic reserves on premium goods already paid for itself. Similar to that, the scalpers - horders of rare/in demand products fullfill that job in capitalism - at the risk of sitting on a pile of lowprice good.
  - mlac 5y ago
    We are going to see a bullwhip effect [1], it's just where and when it happens. I heard two things this morning about more car shortages (due to chips), Manheim auto auction has had extremely low volume this year, cars going at auction for more than they sold at retail 3 years ago. Some of this I think is sticky (I don't see new car dealers lowering their prices or being willing to negotiate quickly), others though I think will have a drop as inventory picks up. Sell high buy low. I just don't know what to sell at the moment. [1] https://en.wikipedia.org/wiki/Bullwhip_effect https://en.wikipedia.org/wiki/Bullwhip_effect
tablespoon 5y ago
>> Any supplier who could actually sell right now would be able to take advantage of this market and build serious market share. So it’s a company with these reserves that will do well in a similar situation. > It might do well in these crises, but if it can't survive the times where everything works well, then it doesn't help. See also: all the new US N95 respirator manufacturers that popped up during the pandemic. Now they're laying off most of their staff and most will likely go bankrupt, because their customers went back to buying cheaper Chinese masks as soon as they could.

jtbayly 5y ago

That’s only assuming they are allowed to raise prices without being sued for price gouging.

mlac 5y ago
They don’t even need to raise prices necessarily to a gouging level - they can just sell product while others can’t. Build brand loyalty, take market share.
- mrob 5y ago
  Just selling products while others can't isn't enough to pay for the cost of the inefficiency when there's no crisis.

mrkstu 5y ago

Hence Apple thriving, and likely continuing to take market share.

hiram112 5y ago
I read a few articles in the past year, since supply issues first began showing up, praising both Apple and Toyota for being less reliant on supply chains out of their complete control. In the last week, I've read several more doomsday articles like this one warning us it's going to get worse before it gets better, and both Apple and Toyota have been mentioned as now having to delay releases or scale back sales targets.