GMM CEO Gandhi Urges Innovation to Hedge on Costs

The video discusses the challenges faced by a company due to rising costs in transportation and materials, and the difficulty in passing these costs to consumers. It highlights the importance of innovation and cost control in maintaining competitiveness. The role of intellectual property in providing a competitive edge is also discussed, along with the significant pricing pressure exerted by large buyers like Walmart and Amazon. The company plans strategically to manage these pressures and maintain profitability.

What is one of the main challenges faced by the business due to rising costs?

• Decreased competition

• Sophisticated sourcing departments of clients

• Lack of innovation

• Increased demand for products

Which factor is currently putting more pressure on the business's margins?

• Wages

• Transportation costs

• Product inputs

• Marketing costs

How does the business attempt to mitigate rising input costs?

• By expanding into new markets

• By reducing employee wages

• Through innovation and sourcing different materials

• By increasing product prices

What role does intellectual property play in the business's strategy?

• It eliminates competition

• It reduces production costs

• It increases labor costs

• It provides a competitive edge

How do large buyers like Walmart and Amazon influence the business's pricing strategy?

• They encourage price increases

• They have no impact on pricing

• They exert pressure to reduce prices

• They help in marketing the products