grim I am enjoying our exchange, I don't disagree with most of what you're saying. Again, not to quibble (well maybe a bit) my point was there is a difference between a practical necessity to make money and a fiduciary obligation to do so. A sole proprietor is subject to the former and not the latter.
I will grant you that the MegaConglom Incs of the world have access to capital and resources that the artisan soap makers can only dream of. There is a difference however, between having the access and availing themselves of it. No Gillette or PG is mobilizing cutting edge technology and resources to make soap or razors or any of that. They're using what hey need to to ensure that they're competitive in their marketplace and they are as profitable as they can be. I don't think its fair to compare the technology used in manufacturing microchips to that used in soap making. With microchips they're either good or they're not. You don't have a garage based microchip manufacturing facility because if you did the chips they produced wouldn't actually be microchips, they'd be garbage. Thats not the case with soap, and just because Gillette could invest in space age soap making factories they don't need to. Its soap. Sure they're not making it in 5 gallon buckets in their basement and I'm sure their equipment is pretty slick but its only as slick and advanced as it needs to be to allow them to achieve their goals. Profit and market share.
Do I think Gillette could make a soap equal to or better than MdC or Nuavia? Absolutely. The only reason they don't is because they don't want to. They make their products as good as they have to be to achieve their goals - profit and market share. To refer to the beer analogy again, Coors makes their beer the way they do because thats what they want - a beer that has a broad appeal, will offend the fewest number of people and achieves the profit/market share goals. They can brew beer any way they choose - they're experts at it which is why when Sam Adams started up they had one of the major breweries brew it for them. They gave them the malt bill - ingredients list and bottles/ables etc. Ingredients will cost more and the market will be smaller but then thats craft beer isn't it?
Mark
I will grant you that the MegaConglom Incs of the world have access to capital and resources that the artisan soap makers can only dream of. There is a difference however, between having the access and availing themselves of it. No Gillette or PG is mobilizing cutting edge technology and resources to make soap or razors or any of that. They're using what hey need to to ensure that they're competitive in their marketplace and they are as profitable as they can be. I don't think its fair to compare the technology used in manufacturing microchips to that used in soap making. With microchips they're either good or they're not. You don't have a garage based microchip manufacturing facility because if you did the chips they produced wouldn't actually be microchips, they'd be garbage. Thats not the case with soap, and just because Gillette could invest in space age soap making factories they don't need to. Its soap. Sure they're not making it in 5 gallon buckets in their basement and I'm sure their equipment is pretty slick but its only as slick and advanced as it needs to be to allow them to achieve their goals. Profit and market share.
Do I think Gillette could make a soap equal to or better than MdC or Nuavia? Absolutely. The only reason they don't is because they don't want to. They make their products as good as they have to be to achieve their goals - profit and market share. To refer to the beer analogy again, Coors makes their beer the way they do because thats what they want - a beer that has a broad appeal, will offend the fewest number of people and achieves the profit/market share goals. They can brew beer any way they choose - they're experts at it which is why when Sam Adams started up they had one of the major breweries brew it for them. They gave them the malt bill - ingredients list and bottles/ables etc. Ingredients will cost more and the market will be smaller but then thats craft beer isn't it?
Mark