Brian Maloney
9/22/17
Assignment 2A
Economic Trend: Detroit Real Estate Heats Up
• This information suggests an opportunity exists as Detroit’s real estate industry has been rapidly improving. Compared to the national average of 66 days, the median listing time in Detroit is just 39 days. Additionally, Detroit listings received twice the number of page views as the national average listing.
• The prototypical customer is those who are buying or selling property in Detroit. This is clearly an up and coming area with a newfound high interest from consumers.
• This opportunity is relatively difficult to exploit unless you are an established real estate owner. It takes a large amount of capital to own and resell property, along with the technicalities in making a sale along the way. An experienced real estate agent can utilize Detroit currently trending to tailor the real estate they own, as it is more likely to be sold in this city.
• This trend personally stood out to me as the real estate industry is among the most lucrative. Using data andstatistics to identify trends and emerging markets is essential toward making the right business decisions.
Economic Trend: Japan’s Economy Grows in Longest Streak in 11 years
• This information identifies an opportunity exists in doing business in Japan. The economy has continued to grow and gain impetus for 6 straight quarters, and shows no signs of slowing down. Consumer spending increased by over 3.7% which shows the population is willing to buy.
• The prototypical customers will be the ones on both sides of business in Japan. Consumers are buying more, so suppliers will provide more. Additionally, American consumers are also affected as Japanese goods have more value when sold exported.
• The opportunity is most exploitable if you are a business with a market in Japan, access to Japan, or buying from Japan. Some small businesses may deem this feat unattainable, but considering the rapid growth their economy is seeing, it is a market worth entering.
• I personally see opportunity in Japan, as globalization of markets is only becoming easier. Imports and exports are increasingly accessible, and with the internet, I am very aware that an American business’ products can be just a few clicks away from the Japanese market.
Regulatory Change: Lower Taxes for Small Business
• This information leads me to believe there is an opportunity exists for small businesses to thrive. Lower taxes mean lower expenses for a business. There are countless ways for a small business to use the extra money they may find themselves having, such as hiring more, making more product, increasing advertising etc.
• The prototypical customer that would be affected by lower taxes for small businesses are both the small business owners and the consumers of small business products and services. With lower taxes, small businesses will be spending more money to improve their business, and therefore customers will be spending more money at small businesses.
• If lower small business taxes are implemented, it would be up to the business owner to decide how to exploit the extra money they didn’t have before. These aren’t necessarily easy decisions, as each business is unique and faces different problems.
• I personally saw this opportunity, as I see myself as a future small business owner. Ideally, I would like to be my own boss, and having the leeway of lower taxes would give me opportunities to improve my business.
Regulatory Change: Higher State Minimum Wage
• This information leads me to believe there is opportunity for almost all business owners selling products and services. A higher minimum wage enables one earning minimum pay to be able to afford more than the bare minimum. This increases demand for products and services for almost all types of business.
• The prototypical customer will be the one earning minimum wage who now has access to a slightly more flexible budget. Businesses can use marketing strategies to target these specific consumers.
• This opportunity can be relatively easily implemented. A higher minimum wage guarantees these workers more income, so as long as a business has the ability to target this demographic, they can exploit the opportunity.
• I personally saw this opportunity because I used to work on a minimum wage in New York. When the minimum wage was increased, even by just a 25 cents, I felt a little more comfortable spending money. Knowing how a raised minimum wage affects the mindset of buyers gave me insight into the realization of a business opportunity to access them.
Brian,
ReplyDeleteThese are all very interesting trends. With the real estate market in Detroit I worry about another trend, that of gentrification. A lot of these cities have surrounding areas that are not as nice, and as the city grows, the real estate markets tend to push out those who already live in those areas with high prices and buildings they can't afford. This is the same problem we see in the Bronx and Brooklyn.
The regulatory trend that gives small businesses lowered taxes is a great opportunity for growth in the economy. Many people, including myself, would love to be business owners. Sometimes all the pressure of costs can deter people, so this opportunity is very helpful.
The regulatory trend on lowering taxes for small businesses I really liked. I support the growth of small businesses. It’s a shame that small businesses don’t have much wiggle room for growth because of their expenses on taxes. I feel that if the taxes for them were to lower then they would be able to grow their small businesses to a much larger business and get to the point where eventually they can afford to pay those bigger amounts of taxes. This kind of also ties into the minimum wage. If businesses don’t have to pay high taxes then, they can afford to pay their employees more, if the employee has more money then, they are more likely to spend more money. I think a lot of people have a misconception of minimum wage. They think that it is a wage for high school students. Really minimum wage should be a livable wage. And by livable I don’t mean for a family, I mean the most basic of needs for one person to survive. I have worked a minimum wage job and couldn't afford to not even rent a room because of the cost of living.
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