Simplicity Could Be Best Strategy in ’08
Tough economic times, like those expected for 2008, are usually good times for retailers to clean house, which could include streamlining operations, cutting unproductive overhead, improving supply chain efficiencies and addressing IT issues. It might also be a good time to review software license compliance, product royalties and licensing requirements. Adherence to and compliance with any licensing issues can literally save businesses millions of dollars in fines and penalties. A slowing economy is a prime time to adjust business for long term cost savings, which lead to higher profits.
Chances are we can also expect the dollar to continue to fall throughout the year. That’s not always a bad thing for retailers, especially if it helps to create international market and product expansion. A weaker dollar greatly impact exports and imports. It can also aid U.S.-based exporters in international markets, especially for companies that properly manage internal reviews and then act on those recommendations.
Trying to keep things simple is beneficial during times in which we’re inundated with too much conflicting information, as we’re sure to experience throughout the year. Our tendency is to attempt to take all points of view into account and then reach some sort of decision. During times like these, it’s always best to gauge any opinions and analysis based on past track records. Focus on the information provided by pundits with strong track records and solid predictions: fact and batting average should count more than political orientation or ideological purity.