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So, what do you do during the 2 years your competition is catching up on that model? Get ahead again, or do nothing and be really surprised when you lose your
by justindz 18y ago
So, what do you do during the 2 years your competition is catching up on that model? Get ahead again, or do nothing and be really surprised when you lose your edge?
I'm not saying labor cost isn't a disadvantage. I'm saying you're treating it like the necessary and sufficient condition for success across the board, which it really shouldn't be. You're suggesting that if you have a labor cost disadvantage, it is intellectually obvious that it's impossible to stay ahead of your competition with advances in other areas (like RnD or supply chain efficiency)?
- mattmaroon 18y agoIt's not a disadvantage, it's a massive disadvantage. It's impossible to stay $2,000 ahead of your competition unless your competition is retarded. Toyota and Honda are not retarded. So we can either wait for them to become retarded (which they may if all of the American car companies vanish) or we can lower our cost-basis and compete on a level playing field.