The boy who lived
This is interesting, thanks for sharing. What will be interesting is the development of the non-duopolistic manufacturers. The new manufacturers in Brazil and China will need to have healthy sales from their own country to insulate themselves from protectionism in other countries. If they develop aircraft before their home market is mature and can solely fuel their demand, they expose themselves to risk of protectionism in other nations, like what happened to Bombardier. They’re almost incentivized to grow and develop not as quickly as possible, but in tandem with their home country.
Apple’s smartphones are in the premium segment, which puts the phones out of reach for most Indian consumers. Apple sells used phones to developing nations as a way to reach customers who can’t afford the newest product, so even if it could sell new phones in India the market potential is likely limited. It would still prefer to sell through it’s own retail outlets, however. In that way it seems to be taking the best possible approach: sell your product (mostly used phones) through distributors, lobby for exception so you can use your own retail stores, and long term identify suppliers who can live up to your quality standards so that as India becomes richer, you will be able to provide the full retail + device eperience.
This is a cool concept, thanks for sharing. It will be interesting to see how this concept evolves in the future. While the desert may provide shelter from the unpredictability of the Nile, the hotter climate of the desert may lead to higher water requirements to grow the same number of crops. It will be interesting to see how that aspect of the economics also plays out.
In complying with these regulations, are the costs not distributed between more than just the trading houses? They may be price takers, but they have a justification for passing the extra cost along to refineries, and if their margin decreases too low, wouldn’t they cease shipping in the regulated zones? Ceasing or drastically reducing operations is an issue for them no doubt, but if the market no longer operates after this regulation, economics would suggest it’s a more efficient market since all (at least more) costs are accounted for and actors factor them into their decisions
This is an interesting example of digitization in the supply chain. End-to-end control and visibility of the supply chain provides benefits to industries as basic as beer production and distribution, but it makes sense that the high tech medical treatment companies are leading the charge given their price per product, low shelf life, and specific transportation needs. I find it interesting that one central location in the US is responsible for all manufacturing, and that the plant is on the east cost instead of a more central location. Perhaps the plan is to build a west coast location when demand warrants a 2nd facility.
Very interesting, thanks for sharing. What’s most interesting to me about 3D printing in this application is the opportunity to produce this onsite. I can imagine a world where hospitals perform procedures, but also print their own implants (using J&J machines). What’s also interesting is this expertise in 3D printing for medical purposes could one day lead to printing organic material (like replacement organs).