The poor are poor, the rich are rich

Chapter 107 4 Be Good at Flexibility and Win Wealth
Chapter 224 Be flexible and win wealth
Being flexible is one of the necessary qualities for investors. We must follow the trend and be flexible.When the investment environment changes or the situation changes, our investment strategy must change, otherwise we will suffer losses.

Driestadt uses an active brain, shifts the way of thinking, reverses the "prestige market" to ban the sale of luxury cars to blacks, changes the way luxury cars are manufactured to reduce costs, and spends money where consumers can see it, Finally brought Cadillac back to life.At the same time, it also brings opportunities for promotion to Drestadt, giving him more opportunities to control wealth.

During the Great Depression in the United States, the entire auto market was extremely sluggish, and the luxury car market almost collapsed.The question facing GM's Cadillac is: Should it choose to stop production entirely, or keep the brand until the market improves?

When the board's executive committee was meeting to decide Cadillac's fate, Driestadt told the committee he had a plan that could turn Cadillac into a profitable business within 18 months, regardless of the economic downturn.

At the time, Cadillac was adopting a "prestige market" strategy, developing a strategy to compete for the market: selling Cadillacs to blacks.

Drestadt also found that many of the customers in the service department were black elites.Most of them are boxers, singers, doctors and lawyers, and even during the economic depression in the 20s, they also had huge incomes.He came up with part of the plan based on his observations of the service departments of Cadillac dealerships across the country.He decided to sell Cadillacs to black people.

Why did General Motors voluntarily give up this market?The executive committee accepted the proposition, and soon in 1934, Cadillac sales increased by 70 percent, and the entire division truly broke even.By comparison, General Motors' total sales growth was less than 40% over the same period.

In June 1934, Driestadt was named general manager of the Cadillac division.He also set out to revolutionize the way luxury cars were made.He pointed out: "Quality is completely reflected in design, processing, inspection and service. Low efficiency is not equal to high quality." He is willing to invest a lot in design and props, and is more willing to spend on quality control and first-class service. Big price, and do not advocate excessive investment in the production process itself."He told us to pay attention to every detail," recalled one executive. "Why would we spend $6 or $2 on a part if someone else could make it for $3?"

In less than three years after his concept was implemented, the production cost of Cadillac was almost the same as the cost of Chevrolet, a low-end car of General Motors, but the high price of luxury cars was still maintained when it was sold. It has become the most profitable department in General Motors.Drestadt's career at General Motors has soared since he miraculously brought the Cadillac back to life. In 1936, he was named general manager of Chevrolet, the company's largest division.

Flexibility in investment is a very important quality. Flexibility is not just changing your thinking, but firmly grasping the opportunity to make money while changing your thinking.Therefore, as an investor, you must cultivate this kind of literacy.

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