Insights on Products/Markets
Changing Markets/Products: Top U.S. Market Caps 1970 IBM AT&T GM Standard Oil Kodak Sears Texaco GE Xerox Gulf 2004 Walmart Exxon GM Ford GE Chevron Conoco Citi IBM 2014 Apple Exxon Google Berkshire Walmart GE Microsoft Chevron IBM
Automobile Markets 1980s Quality Metric Mercedes Cadillac Toyota Nissan Buick Chevy Price Metric
Geography Matters
Capturing Latent Demand Case Study: Las Vegas Capturing Latent Demand
Phase 1: Gambling $ (1950s-1980s) Gambling Revenue (hotels, shows subsidize)
Analysis “Latent Market” Rapidly Expanding West Coast population and income post WWII People like to gamble – Barriers: few legal gambling outlets nationwide Challenges?
Phase 2: Entertainment $ (1990s-) Revenue from Gambling, Food, Shows, Rooms …
Analysis “Latent Market” Transaction Costs (complementarity) Expanding national population & incomes People like shows, nice rooms, … Transaction Costs (complementarity) Destination vacations Gambling feeders (loss of barriers not an issue) Extensive flight networks Challenges?
Phase 3: Entertainment + Residential $ (2000-)
Analysis Latent Markets Transaction Costs Challenges? International incomes and population Transaction Costs Expanding flight networks Challenges?
Case Study: Disneyworld Similarities with Vegas? Future Challenges?