Monthly Archives: October 2013

Uncle Sam is in debt

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Part of the US government has closed when the deal on a new budget was not approved by the Congress.China,who is always regarded as the largest creditor to the America government,also raises its voice that US authorities needs to “take decisive and credible steps to avoid a default on its Treasury bonds”.

This shutdown made many employees within the government jobless.Some services are temporary unavailable now,which cause inconveniences to citizens all around the country.But don’t you think it’s proper time for the government to reconsider its economic policies?Why is Uncle Sam in trouble again when he almost recovers from the financial crisis? Let’s throw a light on how the government economic policies work.When US is short of money,it tends to sell China more bonds and cuts the interest rates to increases the assets.However,the debt never seems to decrease so US goes on selling bonds and cutting the interest rate and finally gets into a vicious circle.The overload liabilities outnumber the assets,therefore it collapsed.Although the market tends to reach an equilibrium automatically,it may take a long time due to the excess demand of investments,thus,US needs to reallocate the resources to get to that equilibrium point.

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God saves those who save themselves-Bet on Blackberry

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Prem Wasta took over Blackberry a few days ago with $4.7 billion bid.Some people may think him nuts because Blackberry didn’t seem to be flourishing these years.The main competitors  like Apple and Samsung are so strong while Blackberry didn’t launch many new creative products,it’s gradually losing its power as a leader in the technology field.However,we can’t see Blackberry as a dying  man.I personally support Wasta,I believe he’ll be the biggest winner in this bet.

When Blackberry was already playing the leader role in the technology field,Apple and Samsung were just like little kids who were still in the growing progress.But customers’ preferences change now and Blackberry needs to make good use of the resources it owns and try to fit the customers’ tastes.Or they can make a revolution to grab customers’ focus back on them by launching more creative products or by advertising.It is the weakness and threaten that slow down the steps of Blackberry.A W-O strategy may help Blackberry to overcome the difficulties.It’s only when it save itself,fixing its internal problems then manage to overcome the external competition whenever there is a chance,that God will finally show up in the company of Nike—the goddess of victory.

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Right positioning helps to win the competition

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As the pace of the development in technology,some gadget accessory-makes begin to feel really stressful.There’re more and more competitors in the market,and every time a major brand launched a new product,those accessory-producers have to keep in pace with the speed and start the production of new accessory,or they may be “abandoned” by retails.What’s more,they have to cope with the uncertainty of products’ launch circles.

However,those small accessory-making companies like Knomo and Breffo,both of them are not the leaders in the market but both of them are able to own a turnover of millions of dollars,they managed to succeed by the right positioning for themselves.Ahead of the launch of new devices,Knomo tries to match their products exactly to those new-launched devices.While Breffi guaranteed that everything it sells is made in Btitain and they can beat the prices offers in  China because of the automatic production process.Compared with other competitors there are advantageous positions that will impress customers,which also prove the importance of positioning of a company.But Breffo need to be alert that their brand name being faked may reduce the brand power to some extent.

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