Topic > Free Market - 1225

Free market capitalism means that companies are able to sell their products at whatever price they believe the market will bear, allowing customers to purchase products at a price they are willing to accept . The key to this market is price fluctuation; where prices rise or fall to reflect supply and demand. The healthiest markets are those in which there are many producers competing for business and many consumers competing for available products. This type of market minimizes government involvement, decreasing regulations, unions and trade barriers, allowing companies and customers to decide which business will succeed. This in turn creates more jobs and competition (TheFreeDictionary, 2009). Creative capitalism centers on companies spending money on projects considered socially desirable. For Bill Gates (2008), it is “market-based social change [adding to] doing work that alleviates the injustices of the world” (Gates, 2008). This builds businesses that support causes important to customers in their neighborhoods. Many companies are jumping on board what some call the RED campaign, which began as a fight to end AIDS in Africa, but has now expanded to a global fight to end AIDS and to have a AIDS free generation. This is just one of many community campaigns, the result of the community work carried out by companies has some economic benefits for the company. Some companies have identified new markets among the poor. The use of tiered pricing has allowed them to provide life-changing technologies at cost prices while increasing costs for those who can afford to pay more. For example, Vodafone bought a stake in the Kenyan Cell Phone Company, thinking that the… print medium… is truly a force for good. change, and as such it becomes advantageous to engage in these positive activities to increase employee dedication and loyalty. Ultimately, it is easier to hire and retain employees when they feel invested in the company's goals (Gates, 2008). It is on this note that it would be wise to consider what the implications are for companies engaging in such creative capitalism with regards to their performance, employees and profitability. Not all employees are equally dedicated to company goals and this is a positive way to gain their support. Profitability can be achieved through the use of creative capitalism, finding a niche and exploring it to the benefit of all involved. Increasing performance and exposure does not necessarily eliminate the need for advertising and brand building, it would be a tool to use during these campaigns.