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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.
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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 Buick Nissan Chevy Price Metric
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” • 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?
Analysis • Latent Markets • International incomes and population • Transaction Costs • Expanding flight networks • Challenges?
Case Study: Disneyworld • Similarities with Vegas? • Future Challenges?