I have an opinion

The shrewdest, smartest maneuver you've ever seen in business

Thu, 13 Jun 2013 14:53:00 -0400

Herbert Dow founded Dow Chemical in Midland, Michigan when he invented a way to produce bromine cheaply. He sold the chemical for industrial purposes all over the US for 36 cents per pound at the turn of the 20th century. He couldn’t go overseas, however, because the international market was controlled by a giant German chemical cartel that sold it at a fixed price of 49 cents per pound. It was understood that the Germans would stay out of the US market so long as Dow and the other American suppliers stayed within its borders.

Eventually Dow’s business was in trouble and he had to expand. He took his bromine to England and easily beat the cartel’s fixed price of 49 cents per pound. Things were okay for a while until a German visitor came to Michigan and threatened Dow that he had to cease and desist. Dow didn’t like being told what to do and told the cartel to get lost.

Shortly thereafter German bromine started appearing for sale in the US for 15 cents per pound, way below Dow’s price. The cartel flooded the US market, offering the chemical way below their own costs, intending to drive Dow out of business. But Dow outsmarted them. He stopped selling in the US market entirely and instead arranged for someone to secretly start buying up all the German bromine he could get his hands on. Dow repackaged it as his own product, shipped it to Europe, and made it widely available (even in Germany) at 27 cents per pound. The Germans were wondering 1) why wasn’t Dow out of business and 2) why was there suddenly such demand for bromine in the US??

The cartel lowered its price to 12 cents and then 10 cents. Dow just kept buying more and more, gaining huge market share in Europe. Finally the Germans caught on and had to lower their prices at home. Dow had broken the German chemical monopoly and expanded his business greatly. And customers got a wider range of places to buy bromine at lower prices.

Dow went on to do the same trick to the German dye and magnesium monopolies. This is now the textbook way to deal with predatory price cutting.

"The risk not taken is more dangerous than the risk taken."

Wed, 12 Jun 2013 18:55:15 -0400

“The risk not taken is more dangerous than the risk taken.”

Awesome quote.

Sat, 01 Jun 2013 12:43:00 -0400

Awesome quote.

Good morning #Chicago! Nice views to start the day!

Thu, 30 May 2013 09:18:58 -0400

Good morning #Chicago! Nice views to start the day!

Authentic #southindian cooking on a banana leaf #winning

Mon, 20 May 2013 14:31:42 -0400

Authentic #southindian cooking on a banana leaf #winning

Modern #religion. Attend ceremonies while working from home....

Mon, 20 May 2013 11:33:54 -0400

Modern #religion. Attend ceremonies while working from home. #siliconvalley

Watching you while you watch the clear blue skies. #weather...

Sat, 04 May 2013 13:55:42 -0400

Watching you while you watch the clear blue skies. #weather #beautifulday (at Mountain View Caltrain Station)

New #book to read: moonwalking with Einstein. #memory

Wed, 01 May 2013 12:02:11 -0400

New #book to read: moonwalking with Einstein. #memory

Amazing macaroons from Bouchon bakery. CEO brought them in...

Mon, 15 Apr 2013 14:26:04 -0400

Amazing macaroons from Bouchon bakery. CEO brought them in @convergentio

This is what focus and determination look like. Eye of the...

Fri, 12 Apr 2013 16:55:36 -0400

This is what focus and determination look like. Eye of the tiger.

How to get out of your comfort zone, and force your self to...

Wed, 03 Apr 2013 16:07:00 -0400

How to get out of your comfort zone, and force your self to learn and evolve.

There is always more to everything, keep an eye on it.

Fri, 29 Mar 2013 02:05:57 -0400

There is always more to everything, keep an eye on it.

#Focus towards your #goals. Tunnel vision

Sat, 23 Mar 2013 16:53:17 -0400

#Focus towards your #goals. Tunnel vision

"What stands between you and you accomplishing your goal…..YOU. Negative self talk, excuse..."

Fri, 01 Mar 2013 12:36:31 -0500

“What stands between you and you accomplishing your goal…..YOU. Negative self talk, excuse making and disbelief will sabotage progression.”

Always Look Ahead And Above Yourself. Always Try To Improve on...

Wed, 27 Feb 2013 00:35:00 -0500

Always Look Ahead And Above Yourself. Always Try To Improve on Yourself. Always Strive To Elevate Your Craft. That’s What He Taught Me - Yoshikazu Ono

#tea is delicious (at Samovar Tea Lounge)

Sat, 23 Feb 2013 21:05:26 -0500

#tea is delicious (at Samovar Tea Lounge)

#nofilter few #facts about the #world

Thu, 21 Feb 2013 20:20:53 -0500

#nofilter few #facts about the #world

"Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and..."

Wed, 13 Feb 2013 02:18:32 -0500

“Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even.”

- Muhammad Ali

The 10 happiest cities in the world

Thu, 07 Feb 2013 18:37:00 -0500

The 10 happiest cities in the world:

#nofilter I didn’t know they actually printed out #xkcd...

Thu, 24 Jan 2013 13:02:35 -0500

#nofilter I didn’t know they actually printed out #xkcd pretty cool