Hi bloggers, its great to be back after a couple of weeks of doing nothing but traveling and reading a few books that i wanted to read(will do a review some time).Also watched some great DVDs.
Now on to what i do best(or love).
The NSE has really gyrated around and from reading the papers all manner of experts had all kinds of answers for the Yo-Yo's.I noticed that Globalisation is here with us.i.e. We as a country can no longer afford to MANUFACTURE some products in Kenya.We don't have a low-cost base as a country.My recommendation is that the following companies should cease Manufacturing in the country coz it ain't helping their shareholders.
Given the high cost of ZInc and other raw materials, no matter how good the manufacturing plant at Nakuru is.It will never produce cheaply either on a volume or cost base to counter overseas imports. The best thing the company can do is to import all the required batteries from low cost sources and sell them over their current marketing and Distribution Network.
Otherwise, with the current strategy all i see are losses and low profits in the medium term.Since, the market for batteries is on price and quality(quality refers to lithium-ion(which aren't manufactured in Kenya)batteries NOT zinc chloride.
The other consumers who have never heard of Lithium ion are more interested in price i.e. if a battery is half EVEREADY's price then its a good battery.
We don't have the volume of tyre sales to justify a manufacturing plant.We are better off importing from elsewhere in the COMESA read EGYPT) and selling the tyres here.Apparently, this is what BRIDGESTONE had in mind before pulling out of Firestone Tyres.But local shareholders wanted to keep manufacturing here to safeguard jobs.Too bad those 'jobs' had to be axed in a recent restructuring of the tyre firm.
I also think that the YANA brand should be axed unless, its going to be positioned as an ultra cheap tyre.Imagine buying your Range Rover sport and having YANA on your sidewalls.Highly unlikely eh? you most probably will have Pirelli ZEROs or BRIDEGSTONE something on your sidewalls.
Inspite, of all the marketing i dont think YANA will ever have the Brand catchet of PIRELLI or BRIDGESTONE.
But if its cheap matatus and the rest of us can buy the YANA's and fix them on our cars.
The only thing i like is the Real Estate/Business Park plan.it is brilliant.
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