With operating margins being continually
squeezed it is imperative that costs are rigorously controlled.
Every business sector is seeing the impact
of spiralling costs e.g. air transport companies have seen their customers moving
business from air to slower and less expensive routes.
Manufacturers of electronics and mobile
phones are now shipping cargo by sea because competition was eating into their
profit margins meaning they needed to cut delivery costs.
Traffic will continue to moving onto the
water because moving goods by air is very energy-intensive and the high cost of
jet fuel was making air freight too pricey.
Facing marked resistance from consumers to
price increases and a greater level of competition, those companies who are
unable to control costs face an uphill struggle to maintain their position in
today’s market place.
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