Posts Tagged quality

Monopolies and Competition: Mom! Dad! AT&T’s Not Sharing!

AT&T, T-Mobile, cell phone, acquisition, monopoly, competitionIn my most recent post at Ethika Politika, I comment on AT&T’s recent plans to acquire T-Mobile, a move that has garnered cries of “monopoly!” (or “duopoly!”) from all sides.

But although many see AT&T’s actions as “anti-competitive” in nature, I see no such thing. From where I stand, the acquisition has great potential to improve the company’s output, which could indeed benefit consumers and invigorate competition in the industry:

With a newly expanded network, AT&T could greatly improve its ability to expand service to rural areas. Due to increased economies of scale, it is likely that prices could decrease across the board. Additionally, although critics claim that the tightening of the market will have a negative impact on innovation, many believe it will raise the stakes (“mono y mono!”), leading to improvements on any number of company weak spots, from customer service to overall quality of service.

Yet whether the deal will be good or bad for (anyone’s) business is secondary; such matters remain debatable. The core issue, as I see it, rests in the mindset of those who adamantly oppose the deal on limited evidence, particularly those trying to prohibit it from happening altogether.

As I argue, the problems with such a mindset can be broken into three main areas: (1) a fear of competition itself, (2) a misunderstanding of the company-consumer relationship, and (3) a corresponding pessimism and all-around static view of human ingenuity and potential.

I expound on each, but regarding the third (and most important), here’s an excerpt:

Do we really believe that markets are that unmovable, or that we as innovators, explorers, and dreamers do not have what it takes to meet whatever challenges and needs may arise? Are we really so short-sighted that we Read the rest of this entry »

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Panera Goes Nonprofit: Losing Growth to Help the Needy

If you’ve ever thought that Panera Bread Co. was too pricey for soup and sandwiches, you now have an opportunity to voice your opinions more directly.

Panera has recently opened a nonprofit store that will allow customers to pay what they want for a meal, and there are already plans to open additional nonprofit stores in the near future.

As USA Today reports:

“While the store does have cashiers, they don’t collect money. They simply hand each customer a receipt that says what their food would cost at a conventional Panera. The receipt directs customers with cash to donation boxes (there are five in the store). Cashiers do accept credit cards.”

The first store is named St. Louis Bread Co. Cares, and according to the USA Today article, its proceeds will be used “to train at-risk youths or to feed folks lacking funds to feed themselves.”

Giving money to help those in need is a lofty goal, but isn’t Panera just acting as a middleman between individuals and their target of charity? As I’ve expressed elsewhere, wouldn’t it be more efficient if individuals just diverted their dollars directly to those in need? They could certainly maximize their Read the rest of this entry »

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