Details Depict Markets
If you don’t understand the details of your business, you are going to fail – Jeff Bezos
You’ve heard about people getting lost in the details. What if the opposite is true?
Hypernomics finds that diving into details is the only way to comprehend a market.
Paul Samuelson wrote, “the equilibrium price…the only price that can last, must be at the intersection point of supply and demand curves.” (Economics, 4th Edition, p. 63). While he won the Nobel Memorial Prize in Economic Sciences, he never worked in aerospace. If he had, he would have discovered that no solitary “equilibrium price” lives there.
But there is even more to it. As A reveals, the new aircraft market splits into those for Civil and Military submarkets. Within the former, there are five sub-submarkets, and all of those have their Demand Curves which combine to form a collective Aggregate Demand Curve, B.
Helicopters perform missions, and each of the eight has its Demand properties, C. With 75 models, there are hundreds of sustainable prices, all held up by the Value of their models’ features (not shown), as limited by their available funds (Demand).
Dig deep into the data and pay attention to the details.
You’ll find they’ll pay off.