What drives a Boom…?

I was just thinking about what’s in a boom. What drives it? And what brings a downfall. And why I got this thought suddenly? Because for the first time in my life I today came across a company laying off people. So I thought I would better discuss and explore what keeps the giant wheel going round and round, up and down :)

Read this…

Sam Walton said,

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else”

But drilling a little down everyone is a customer and each of us work in this viscous circle to keep the circle a perfect one ,ensuring the circle has no open ends! Not making sense??… I will explain it with a example.

In India we work in a services oriented fashion. Lets for the sake of it assume Iam a engineer working for a client Nokia. Now I work only to please my client and make him happy. I ensure I deliver my part of the product best.Nokia does his part of it ,integrates them and makes sure he sells his mobile to make his customer happy. And who is this customer? .The so called End Customer/Consumer? ..It happens to be me, you or someone else. And the money nokia earns it shares with me indirectly because I am paid indirectly by him.

Now there are two things. One, economies/companies grow only by sharing wealth and two, the consumer needs to spend, for the money to percolate. Only then the wealth flows and at some point flows back to us.

If you read the above paragraph again you will realise that these are the two things USA does excellently well.

And what is this viscous circle I am talking about should already be clear to you. It’s a binocular view of Demand – supply theory. Only if the supply is matched, and matched with the demand the product would sustain in the economy. If for some reason the demand becomes less the loop is broken. To be precise if the consumer is not in a position to afford the product or the product is not meeting consumer’s expectation then, the company/economy/product will become obsolete.

And now you know who drives the boom? Its you and me!!. :)

Having talked about spending/sharing wealth, to sustain the boom for our selfishness, :) in my next blog I will write about Saving!!!

Till then Happy reading…