There was an article in the Globe and Mail that revealed how one of Gap’s suppliers in Bangladesh, the Next Collections Limited factory, had been committing serious labour abuse. Workers were being forced to work extremely over time, in poor working conditions, and were often fired for unsubstantiated reasons.

What stood out to me was how although operations overseas can be beneficial cost-wise, there are some major concerns to be considered as well. These days many companies are shifting their supply operations to places like China and India where labour is cheap and they can reduce costs. However, by moving parts of its supply chain far away from home, companies lose control over their production process. Inspections over these factories are rare and time-consuming, leading to overlooked issues. When these problems surface they can have a damaging effect on a business’ reputation, even if they themselves are not abusing their workers. I would suggest that businesses undertake more thorough inspections of their overseas production factories in order to avoid this problem. The article stated that Gap had only spent a mere 20 minutes at the factory before leaving to talk with management.

Tu Thanh Ha, “Gap supplier hid labour abuse in secret books: report,” The Globe and Mail, October 4, 2013, accessed October 5, 2013, http://www.theglobeandmail.com/news/world/gap-supplier-hid-labour-abuse-in-secret-books-report/article14703128/

JetBlue, a single-class commercial airline company, is planning on launching its first premium class, “Mint”. JetBlue plans to make this change to its coast-to-coast flights in an attempt to enter the competitive market for premium fliers who pay the highest for luxury seats on those common cross-country routes. However, by including a premium class, JetBlue seems to be abandoning its belief in passenger equity that has defined its brand. According to the article we read this week one of the “pitfalls of brand positioning” ¹ is that companies can become too focused on responding to competition that they abandon their previously established positions, causing them to lose their existing customers. To address this concern JetBlue announced it would improve its non-premium seats also. However, JetBlue’s single-class beliefs are still compromised because there would still be a difference between the economy and premium classes. Nevertheless, I would recommend JetBlue still launch “Mint” because it seems that consumers are placing more value in having a luxury class option than having equal seating. JetBlue needs to adapt to these consumer attitudes. In addition, Jet Blue has already been slowly compromising its equality promise by offering passengers the option of upgrades for extra legroom.

Article source: Charisse Jones, “JetBlue launches premium brand called Mint,” USA Today, September 30, 2013, accessed October 1, 2013, http://www.usatoday.com/story/travel/flights/2013/09/30/jetblue-corporate-fliers/2792863/

Image from: “JetBlue,” accessed October 2, 2013, http://l1011.homestead.com/jetblue.html