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Thursday, December 27, 2007

Strategies to make profit

There are three strategies for a company to make profit:

1. Operate efficiently, reduce cost, offer good value to customers and make a fair margin.
2. Exploit the market situation and customer ignorance to increase profit
3. Design products to "rip off" the customer; pay high commission to people to market the product.

I want to encourage businesses to adopt stragegy 1 (i.e. the ethical approach). It is very sad to see more businesses adopt the other two strategies.

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