The last article on The Blog was written by a guest editor and he did a fantastic job of explaining the law of demand. In case you missed it click here. This article primarily focusses on the multi zillion dollar question that the previous article sort of raises.
What came first The Demand or The Supply?
Theoretically speaking all those thick books on economic theory state that only when there is a demand for a product will there be a supply. And to some extent I guess that those guys are right. However, let's consider two examples.
The first is that of the Iphone. Steve jobs put it rather bluntly when he said, "The consumer doesn't know what he wants". And that's exactly the case. You and I didn't feel the need for an iphone till it was launched. Obviously it doesn't apply to everyone but it is pretty evident from the sales of the iphone that the consumers have been loving it. Clearly there wasn't a demand for an iphone but Apple still went ahead and came up with it.
Now let's look at another example. Let's take the example of PVR Cinemas in India. There was a clear demand for good quality Hollywood films in India and that is exactly from where PVR as a brand developed. They started out by bringing some films and eventually developed into a full fledged multiplex chain on the basis of meeting the consumers demand.
Based on the two examples it becomes increasingly difficult to decide what came first. The demand or The supply.
And hence lies the unanswered question
Who came first Demand or Supply?
-Doodle
What came first The Demand or The Supply?
Theoretically speaking all those thick books on economic theory state that only when there is a demand for a product will there be a supply. And to some extent I guess that those guys are right. However, let's consider two examples.
The first is that of the Iphone. Steve jobs put it rather bluntly when he said, "The consumer doesn't know what he wants". And that's exactly the case. You and I didn't feel the need for an iphone till it was launched. Obviously it doesn't apply to everyone but it is pretty evident from the sales of the iphone that the consumers have been loving it. Clearly there wasn't a demand for an iphone but Apple still went ahead and came up with it.
Now let's look at another example. Let's take the example of PVR Cinemas in India. There was a clear demand for good quality Hollywood films in India and that is exactly from where PVR as a brand developed. They started out by bringing some films and eventually developed into a full fledged multiplex chain on the basis of meeting the consumers demand.
Based on the two examples it becomes increasingly difficult to decide what came first. The demand or The supply.
And hence lies the unanswered question
Who came first Demand or Supply?
-Doodle
