1/5/11 "The Family"

I got sick on the bus riding out to Punto Blanco, a family owned sock company. I think I drank too much tap water. Punto Blanco was a really cool visit, we were guided by a professor and IQS who had worked at Punto Blanco for a few years as an operations manager. He took us through the entire factory laying out the steps needed to make socks. The more interesting part of the tour came when we talked about the market P.B. is currently in.

Since their heyday in the 70's-80's, P.B.'s market share has dwindled from 15% to now around 5%. The reason for this is because many sock companies in Spain have moved production to China were the labor is much cheaper. He said that for other companies this was the best strategy because for every pair of socks they made in Spain it would cost E1.20, if they shipped it from China it would cost E.30. Punto Blanco is in bad shape, they have lost most of their market in normal socks and have resorted to offering high-end socks for niche markets. They are also looking to expand into underwear, but the outlook seems bleak.

Punto Blanco is making 0 profit. They are not making money nor are they losing it. Their primary goal is not money, but to keep jobs for their current workers. They are only willing to cut jobs and outsource if it means keeping to business afloat so that they can employ people. Business students are shocked and appalled, but they don't understand the family ideals.