Sunday, May 30, 2010

No. 8: Stay away from the trendy business.

The Japanese government started the specified health examination as a measure for metabolic syndrome about two years ago. Buck then, consumption of products related to dieting was a social phenomenon, but the enthusiasm consumers showed two years ago has faded away drastically these days. Neither instruments to strengthen abdominal muscle nor products to prevent metabolic syndrome sell fast today. Seeing the trend of government policy, many companies rush into new business that seems promising to keep abreast of others. Today, many companies go into business for children in anticipation of the benefits for children to be provided by the government. Taking advantage of the gourmet boom, an increasing number of companies branch out into the gourmet business. When the zeal subsides, a company that has the smallest sales is the first to quit the market, and most companies quit the market with reflective consciousness that they should have exerted much energy in the core business. In whatever kind of business, only a few companies that went into the market in the initial stage and that have enough capital to compete in the highly competitive market can survive. When the zeal ends, mass medial makes a lot of noise without mentioning the fact that it fed the boom. No one can tell precisely what the policy enacted only for the election will be if the regime changes. It is a perfect opportunity for a company to beat its competitors if they branch into trendy business that offers no synergy effect.

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