2020-08-13 19:01:25.021346 by Unknown

Author:Unknown
Format: epub

Whether or not the success of these kinds of small packaging in Indonesia is indeed caused by the socioeconomic status of Indonesian consumers, the above quote implies that this kind of flexibility in product design was sought after by dominant companies because selling products in small packages is deemed more profitable (at the expense of customers). So, at the end of the day, such buying behaviors are indeed beneficial for suppliers like Star Inc., which experience an increase in orders from dominant companies that compete to capture a market with such distinctive characteristics. As a result, not only do dominant companies produce hundreds of brands but varieties within the same brand. In Indonesia, you can have many types of SKU (Stock Keeping Unit) of, say, a particular anti-dandruff shampoo brand. The bottles will be mostly sold in the grocery stores, but the sachets will be sold in warung , tiny stores in the neighborhoods that sell everything from salt and sugar to daily care products.

The question is how this “ good for business ” strategy is actually implemented in labor-value chains, and what the consequences are for companies like Star Inc. to be the executor of such production processes. Systemic rationalization enables dominant companies to shift the dynamic demands of the markets “ in a flexible manner and within increasingly tighter schedules to the dependent companies and segments of the production chain. ” 14 In other words, the responsibility to engage in such flexible processes is transferred to the suppliers, namely the dependent companies in the Global South, like Java Film or Star Inc. 15 As we will see later in this chapter, not only does such rationalization affect the organization of work within dependent firms — including problems created by a “ flexible approach ” in production processes — but it also affects the labor process that is embedded in this organization of work.

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