Gas Prices are High? No Worries -- Will Compensate!

Just read this news article, that GM is going to subsidize gas for drivers.

As I read this, my mind reacted in many ways.

1. Wow. Really, Wow. That shows how desperate and dire the state of affairs are for GM these days. "Please buy our guzzlers. Don't worry about the gas price. Heck, we will pay you the difference. But, please buy our cars."

2. The industry's "deadly addiction" to gas. It is clear that the US automobile industry is staring at the headlights standing in the middle of the road. It will be quite some time before GM and other vendors rejig their assembly lines for fuel-efficient / hybrid cars. The question is: do they have enough time, and will they even survive to see that day?

3. The shape of things to come. I think the next 20 years will usher in a new renaissance. Old companies that are too slow to adapt will be road kill. As the influence by such manufacturing companies wane, the political will towards big oil (and other carbon-fuel dependent industries) will no longer be benevolent. "Environmental conservation" will guide domestic and foreign affairs just as "civil and human rights" did from 1950 to 2000.

The question is, how rough will the journey be in the interim?

Does Google's Advertising Model Work?

Google is a runaway success. It makes money by auctioning advertising slots.

But, is that good enough reason to classify it as being in the advertising business? I really question that.

I really think Google is in the "information access business". Think library or librarians. Customers come to Google because of it's superiority in cataloging and indexing information, and making it easily available in a simple to use format without much clutter. They are the best at it. And that is why I choose them hands down, each time. And that's why I visit the reference section at the local library as well.

I don't recall clicking on the advertisements that show up on the sides. I know the people who advertise will pay Google IF and ONLY IF I click on their advertisements. But, really, many times I am searching for information that doesn't neccesarily lend itself to something I can buy. And even if there is, I would go to www.ebay.com or www.froogle.com or www.amazon.com to buy. I do all the "academic research" in Google.

In fact, for a majority of my recent expenses, I didn't click on Google advts before I purchased. Gas, groceries, photocopies, cable, phone, internet connections, taxi rides, and more -- don't require a Google search. When I bought my home, sure, I did research on Google -- but I didn't click on banner advertisements in Google. Or when I refinanced my home. Or when I bought my new car insurance. Or when I bought my new car.

What about you? Really, when was the last time you clicked on a banner advertisement that showed up on Google's search results page? And when was the last time you clicked on a banner advertisement AND then bought from the page that results.

I am also a marketer by profession. I really wonder if I would keep bidding up on keywords and raising the auction price for the keywords. In effect, while Google's cash machine is ringing, my competitor and I are on a bidding war. That model doesn't work for me.

And I have stopped playing it.

These days, I have stopped investing in Google adwords. I have begun investing in building "real" content on webpages, weblinks, websites -- that Google's search engines presents in its "actual" search results. As does MSN, as does Yahoo, or any other search engine. I tend have greater influence over my readers when they get to my webpages that has pictures, text, content, other user comments, references, etc., than when I bid for a 15 charecter length keyword using Google adwords. Finally, I don't see the direct connection between people clicking my advertisements and people buying my wares.

Thoughts?

What's Shaping Up? Why Are Companies Hoarding Cash?

There is a lot of press lately about now organizations are hoarding cash in record amounts and about how they are not investing in long term growth opportunities.

So, the question is: why are companies doing it?

I think there are three key reasons:

Preparing for a Competitive Onslaught: Companies have been addressing competitive price pressures from globalization by aggressive outsourcing, wringing efficiencies and productivity gains from their processes. The next phase is going to be all out competition on all fronts (price, products, customers, channel, innovation, designs, etc) from companies in the emerging nations. The pattern is emerging already with increasing merger and acquisition activity driven by foreign players. In response to which, incumbents are merging and saving cash to erect greater protective defenses.

Changing Economic and Currency Order: The world economy is booming just as the US economy grew in the very early 20th century driven largely in part by the wars in Europe. At that time, the US supplied goods and services without directly participating in the wars. Today, the emerging economies are vastly benefiting by the unsatiable desire for low-cost, high-quality products and services. Combined with large scale borrowing by developed nations, could cause the world's mightiest currency to fall precipitously. Organizations recognize this and they are conserving cash for a rainy day (and to buy themselves out, if needed).

Significant Uncertainty in Energy, Financial Markets, Foreign Affairs, and Environment: While this is a seemingly unconnected list, there are serious developments that could shape the things to come. Global organizations are conserving cash, and are on a wait and watch pattern see how things shape up. A lot of things could go wrong before they get better. Here is a list.

• An global energy crisis.
• A collapse of the US automobile industry.
• Significant defaults on credits, home loans, foreclosures
• A collapse in the US real-estate asset prices
• A collapse of the US bond market.
• A collapse of the US dollar
• A gradual revival of the global automobile industry based on renewable fuels, hydrogen powered cars, electric cars, etc.
• A gradual, steady drop in the reliance of oil.
• A serious change in the US leadership that values environmental protection.
• An enforcement through global treaties to reduce "carbon emissions" now that the US economy doesn't depend on it any more.
• A fall in the Middle Eastern economies.
• A rise in communist Russia, belligerent Venezuela, a religious and nuclear Iran, and an unpredictable China.

Let's discuss if you agree.

Lawn and Garden Bags

It's summer -- and the green grass grows!

Has it occured to you that the diameter of the lawn and garden bags are smaller than the some of the common lawn mower bags? Why? Why?

This is where some standardization could help. I hope either:

1. Lawn mower companies notice this and make their bags smaller. I really doubt consumers will like this step. Who would want to keep emptying a smaller bag each time? Bigger is better.
2. Which leaves us to the manufacturers of the lawn and garden bags. And there are MANY! I think if a few recognize this problem, and advertise that they have thought of this, and that their bags are "convinient to use", I would buy them even if they costed a dollar more.
3. Also, can we increase the weight of the paper that is used as the base of the bag? Make it stable.
4. Can we provide a stronger "rim" to the mouth of the bag, so that it doesn't crumble when I try to empty the contents from my lawn mower bag?
5. Finally: what's up with the height?? Can the lawn and garden bags be shorter - and may be wider?
   

Until then, I will continue with my mowing and tussle between the lawn mower bag and the lawn/garden bag.