Solyndra, a solar panel manufacturing firm, focused too heavily on creating a new plant, overspending, which included over $500 million US government-sponsored dollars, on creating a state-of-art facility, without thinking through how to make high-quality cheap products that can compete in the global market. It also abandoned its existing plant, halting all production and sales. Without revenue just expenses no wonder it went bankrupt.
Keys to success in any businesses, according to Sam Walton, are to lower cost of production as much as possible and to offer high-quality low-price, high value items to customers.
It's not simple. Labor and material costs are fixed in any given country and are the bulk of the costs. The only way to lower these expenses is to go oversea to developing country where labor and raw materials can be exploited.
How to create jobs in US? Americans have to compete with China's labor force, where a typical blue collar makes $200 US a month but works 8-10hrs six days a week.
We need to redefine poverty in US.
Basic needs for a family of 4:
1) shelter, includes heat, electricity, clean water for bath and cooking
2) food, includes basic cookware and appliances
3) clothes
4) education
5) exercise
6) healthcare
7) entertainment
8) safety
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