Thursday, December 1, 2011

Biz bits.

Big excitement over a potential employer of 6000 people in Redmond!

Except:

1.) the company is obviously shopping, having supposedly committed to DC last year, and then looking at four or five other places.

2.) the company currently has 10 full time employees. Not 100. Not 1000, where even then we'd be asked to believe they can increase by 85%. 10 employees.

3.) a change in state laws to allow a financing mechanism for the company to do all this.

I recognize such customers. I usually tell them they'll be happier shopping elsewhere.

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American Airlines files for bankruptcy. I remember reading once that if you take the airline industry as a whole from its beginnings, it's LOST money.

I read this in an article about "dysfunctional" industries.

I'm convinced that once a industry tips into this kind of dysfunction, it never comes back, but just flails around from then on.

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Speaking of Redmond.

A 50-year plan. 10,000 jobs by 2030.

Wait a minute, aren't you going to get 6000 jobs in one fell swoop?

Oh, and a 50 year plan?

Forgetaboutit.

I write speculative fiction, too. I don't mistake them for "plans."

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That picture in the Bulletin of a huge crowd of people applying for 50 jobs at Deschutes Brewery?

Where the hell is everyone going to park? (Employees and Customers?)

I never thought to ask this but: Is this business getting too big for downtown Bend?

4 comments:

H. Bruce Miller said...

"I never thought to ask this but: Is this business [Deschutes Brewery] getting too big for downtown Bend?"

Where do you think it should be? The Old Mill District? Parking is almost as jammed there. I guess they could move it to one of the malls, but I don't think Gary Fish would go for that.

Duncan McGeary said...

I've always liked Yogi Berra's comment: "No one eats there anymore. It's too crowded."

Still, I suppose it could become a problem. But I'd rather have too many than too little people downtown.

Duncan McGeary said...

Another term for dysfunctional industries, is "suicidally competitive."

Makes no sense. But industries get to a point where NO ONE makes money because EVERYONE undercuts.

Like I said, dysfunctional.

I've wondered sometimes if every industry eventually cuts prices to that point.

If one purveyor can figure out a competitive advantage, he forces everyone else to drop their prices too.

Except competitive advantages are impossible to maintain forever.

So for instance, what happens to Walmart when China's workers want more money. I guess they move to another part of the world. -- but the point remains, the advantage eventually is eroded.

But the price structure remains. Forever.

Carl said...

"...So for instance, what happens to Walmart when China's workers want more money. I guess they move to another part of the world. -- but the point remains, the advantage eventually is eroded."

So? The Roman Empire was also finite, but for them while it lasted, they enjoyed it. What you said has been the rule since WWII ended. First Japan, then So. Korea, now China. But for some industries, they have left China for Burma, Bangladesh, Sirilanka. There will always be competitive advantages.