Last message looked at how people keep on driving despite high process for gas. Why? For convenience. Understanding this fact helps us spot some important investing and business trends. You can see this message here
There is a saying that man can achieve the impossible, put men on the moon and explore the deepest troughs in the sea. Yet man cannot defeat the inconvenient.
As our world becomes a busier and busier place, convenience grows in importance. Big business recognize this. McDonalds, for example, has built its business on convenience. Fast service at low prices have always been their goal. A May 24 2004 article in USA Today entitled “McDonald’s Wades deeper in DVDs” outlines that the chain is now testing DVD rental kiosks at 105 stores. Their aim appears to be aimed at outgunning Blockbuster because they are renting DVDs at $1 a day (versus $3.99 at Blockbuster) and they can be returned to any McDonalds (at Blockbuster renters have to return titles to the same store).
Yet McDonalds does not plan to make money from renting movies. Convenience is their strategy. Their plan is to offer convenience to get more people into their stores where, “They are subjected to the smell of those french fries. It's going to sell more food.”
We have made an interesting journey in the last three messages, gas prices (see ***link to Weds June 16) to the intelligence of the masses (link to Fri June 18) to DVDs, burgers and fries. But the dots do connect. So can we keep drawing conclusions? What other trends does this line of thought connect for you? Let's share the power to the 3000th!