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Showing posts with the label demand

Just my thoughts #0655

Many people in our society invest in bonds. Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost. This is the transaction value of bonds. When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why CEOs...

Just my thoughts #0255

Revealing all your attractiveness and skills at once is unwise. This principle is also relevant in business. In marketing, creating “waiting demand” can occur when a superior product model is announced in advance, pressuring customers to postpone their purchases. This phenomenon is known as the “Osborne Effect,” named after the Osborne Computer Company in England, which introduced an excessively innovative computer named Vixen and subsequently went bankrupt the following year because existing products could not be sold. Innovating and guiding your current customers is never a straightforward task. - Joseph’s “just my thoughts”

Just my thoughts #0224

There are markets where demand generates supply, while there are markets where supply must generate demand. Las Vegas, a city in the middle of the desert, is a business structure that creates demand from supply. Supplying gambling rooms simultaneously generates the operating income of the gambling room and profits from hotels, transportation, restaurants, and shopping. In a poor business environment, you need to review the essence of your business. If you try without structural change, you will likely tire, and it isn’t easy to expect improvement. - Joseph’s “just my thoughts”