Outsourcing helps emerging economies by providing more jobs for their country. A large corporation may decide to outsource their manufacturing in order to save hundreds of thousands of dollars and sometimes millions. The value of the currency is what will make the largest impact on a corporation. It would cost one tenth of the normal labor wages to manufacture in a country such as India versus manufacturing in the United States. The wages the corporation will be paying the local people in India will be equivalent to what the US workers would have made but cost a lot less to do it. Many people in the United States frown on corporations that outsource. I personally do not see it as a negative; however the loss of jobs from the corporation leaving the country could cause some issues. This is where corporate outsourcing may or may not help them develop country it is leaving.
At first glance it seems the corporation is costing the developed country or let’s says the United States, thousands of jobs. Americans will begin thinking that these thousands of people are now left without a job but then the corporation hires thousands of non-Americans. I can see how this can be bad PR in the United States. There are a lot statistics and research’s that support outsourcing for the developed country. Many say that the re-movement of the corporation will open up doors for the employees left behind. In fact the majority of jobs in the United States is created by small businesses and the outsourcing will provide a much lower price of products to sell which also combats national inflation. Patrick Dixon form Global Change stated that “research shows some of the new economic activity generated in developing countries by outsourcing will generate new demand for goods and services in the country where the jobs have moved from the developed countries. It has been estimated that every dollar that US corporations spend on outsourcing to India gets $0.33 cents and the US economy benefits by $1.14.”
Old school marketing use a push messaging to reach the consumer, while new school marketing use a pull messaging to reach the consumer. Pushing messages is a way of interrupting the consumer like a commercial on television or telemarketer calling during dinner time. This interruption can turn the consumer off right at the start. Pull messaging is more like funneling individuals who are interested to come to; the consumer searches for the product and the organization pulls them in. The pull messaging turns into permission marketing where the marketers begin asking for consumer personal information like email address, age, income, and even phone numbers. This information is given to marketing from the loyal consumers or the people who follow the brand, they are not forced to provide the information. Personal information is given to be part of the inside information or be put on a mailers list.
Social media marketing begins with the consumer and builds relationships with them. They become loyal to the brand and more likely to purchase products. The old traditional way puts relationship last after they have bought the product. Social media builds relationships at the beginning creating the trust. It is all about connections, conversations, and community. Social media builds a community around the brand while strengthening the relationships. The future will always be relational and will be an industry that will be around for a long time. Social media may change in platforms and tools, but social networking as a relational social gathering on the digital platform is here to stay. The more you learn about social media the more you will be in tune to your industry no matter what industry you are in.
Starbucks is a company with world renown and was first established in 1971. In the last ten years Starbucks has tripled in annual revenue and earned $16.5 billion dollars in 2014 with a total of 21,366 stores. Starbucks is the second most valuable fast food brand in the world, second to McDonalds. What differentiates the company from its competitors is focus of speed and quality. Starbucks tries to get the customer their order in 3 minutes and 3-5 minutes when it’s busy. The equipment selected in each Starbucks store is at one of the highest quality pieces of equipment in the industry. Starbucks claims to have 87,000 different drink combinations and the barista can make each and every one of them. These specific steps translate to their brand and product value. Each store has high quality equipment and each store has a barista that can pour a perfect cappuccino and latte with the right amount of foam on top. The baristas are taken care of since Starbucks offers health insurance to their employees who work 20 hours a week or more costing $250 million dollars in 2009. This makes the baristas happy and enjoyable to speak to in the stores.
The product in each global store relates to the target market because each cup of coffee ordered can be very unique to the customer. The 87,000 different drink combinations helps Starbucks fit in each market. Some stores in various countries change the look of their logo a bit to fit the culture and beliefs of the country. Most logos show wavy hair while in Saudi Arabia, the lady on the logo is covered up. Some countries (not the USA) show the full picture of the lady who is holding her legs (fins) in the air like a naked mermaid with two fins which seems to be a turn off in America. The Starbucks logo changes depending on where they are in the world. Starbucks is continually growing each year and looking to expand their global presence.