1. Insights on Products/Markets

2. 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

3. Automobile Markets 1980s Quality Metric Mercedes Cadillac Toyota
Nissan
Buick
Chevy
Price Metric

4. Geography Matters

5. Capturing Latent Demand
Case Study: Las Vegas
Capturing Latent Demand

6. Phase 1: Gambling $ (1950s-1980s) Gambling Revenue (hotels, shows subsidize)

7. Analysis “Latent Market”
Rapidly Expanding West Coast population and income post WWII
People like to gamble –
Barriers: few legal gambling outlets nationwide
Challenges?

8. Phase 2: Entertainment $ (1990s-) Revenue from Gambling, Food, Shows, Rooms …

9. 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?

10. Phase 3: Entertainment + Residential $ (2000-)

11. Analysis Latent Markets Transaction Costs Challenges?
International incomes and population
Transaction Costs
Expanding flight networks
Challenges?

12. Case Study: Disneyworld
Similarities with Vegas?
Future Challenges?