Lessons from “David & Goliath” by Malcolm Gladwell

“David and Goliath – Underdogs, Misfits and the art of battling giants” is the new book from Malcolm Gladwell which is based on the premise that maybe we have all been looking at the David and Goliath story completely wrong.

david-goliath-malcolm-gladwellGladwell starts by discussing specific details from the Biblical story to build the case that David the shepherd boy should have been the favorite in that battle. We all got it wrong because we were fixated on the giant that Goliath was, because we believed that it would be a close quarter battled where size, strength (of warrior, their sword and armor) would matter. But it wasn’t to be.

He dips back into the classical economic theory to talk about the marginal utility curve being an Inverted U curve. And if we believe that its an inverted U curve, then there comes a point beyond which the marginal returns decrease. Or in other words, the same things that were an advantage at one point may become an advantage on the other extreme of the spectrum.

As always, Malcolm backs his hypotheses with solidly researched stories.

  • One of the interesting stories is that of an Indian software engineer (who had never played basketball before) coaching his daughter’s team to national finals. How this outsider looked at his team – a bunch of self proclaimed nerdy girls, and how he looked at the traditional way of playing basketball. His gameplan – play the full court press – was something that was so unexpected that they just surprised their opponents all the way upto the finals where their opponents did the same to them.
  • The whole debate about class-size vs quality of education is again something where there is no clear answer and the reason is that the impact of an increase(or decrease) in class size depends upon which part of the curve the class currently is. It seems that if the class size is too small – there is no momentum in discussions and the intensity of possible interactions might be overwhelming for the kids. On the other hand, if the class size is too big the number of potential interactions may become too high to manage. Hence it seems the ideal class size is between 18-24. This is a great analysis for all those anxious parents who have been using the teacher:student ratio as a way of convincing themselves that they are giving their kids the best education possible. Apparently there is a simple rule in Israel – as soon as the class size crosses 39, they start another class.
  • Another interesting debate that is brought up is whether its a good idea to be a big fish in a small pond or a small fish in a big pond. And Malcolm does this on a very sensitive topic. Should you always choose to go into the top most college that you have an offer from. I am sure, you know what he is hinting at. And apart from some well curated data on college choices and subsequent career success, he also brings forth the choice that the emerging bunch of impressionists made in Paris. The economic principle discussed here is Relative deprivation – comparing with peers and then deciding how we want to feel.
  • Capitalization Learning Vs Compensatory learning: There is a detailed discussion on the lives of some very successful people who were dyslexic and how they managed to “compensate” for this apparent disadvantage. It seems that people who can build on compensatory learning (which is actually a very had and difficult approach) develop their own set of tools to thrive in their chosen fields. E.g. the trial lawyer who couldn’t read properly but had compensated this by listening and remembering things.

Watch the Video from Talks at Google here:

The key lesson that I took away from this book is that start-ups in garages would continue to dethrone big companies because beyond a certain point, their size, capital, processes, existing customers – start becoming their biggest disadvantage.

And when going head-to-head with a Goliath, don’t play by their rules. Make your own rules, where their disadvantage can be exploited.

Why mobile payments must arrive soon

I try to go walking on most weekdays. And I prefer to do so light – carry just the minimal stuff.

On my way out for a walk yesterday, I stopped by to take some cash along with me – just in case.

And this got me thinking, with my smartphone (& earphones) I do not need so many other things.

I know the time(so that I am in time for that movie), can listen to music while I walk, I can track my work emails (allows me to stay away from my laptop) , I know I can be reached anytime if the need arises(through calls, SMS, messengers etc).

I can track my workout (and its just amazing what all some of the fitness apps can do), click high resolution photos while I am on the move and share it with my friends & family.

But I still need to carry my wallet when I go for my walk. I do so, because I might want to buy fruits on my way back. Or I might get a call from home to pick up some other groceries. Its usually not a planned spend but I want to have the confidence that I have money available to spend when I am out for a walk.

 

I don’t like the feel of the wallet while walking. I would love my phone – which is the digital swiss army life in most our lives – to be able to do that. I would want my phone to give me a sense of financial security too.

Swiss army phone

I know business strategists would say this an isolated and small use case. And I agree. But my point is, its a matter of time. While mobile has brought all these solutions into one gadget, payments cannot stay away for too long.

But then again, its not just me. When my mother goes out for a walk, she carries her phone and a small purse. Does she spend money every day – No. Would she go out without money/purse – No. Would she go out without her phone – No.

Crowdsourcing from a captive audience – New approach to complimentary breakfasts

Crowdsourcing is all the rage. And restaurants seem to have caught the fancy.

There is this guy who is spending a good time just getting real feedback before he decides what and where of his restaurant. A few restaurants have decided to skip the printed menu completely. Who wants to pay professional photographers when the customers can click the dishes with their smartphones and create a more powerful visual menu?

Crowdsourced restaurant

So let’s take the example of the first guy – are restaurants keen to know which dishes to keep in their menu? In most of the cases – Yes !

Does crowdsourcing help? Yes !

The data becomes more reliable with increasing volume.

But the challenge remains that if the customers are not repeat (as Groupon showed us) and if they are just looking for the next cullinary adventure, then crowdsourcing might not be too helpful at all. 

Why? Because we may be using the knowledge of segment A to cook and serve a dish for segment B ! There is no positive reinforcement for the individuals who gave feedback. Do they go back and see their feedback implemented?

But take the case where a restaurant has a captive audience.

Let’s say you checked into a hotel. Chances are the breakfast is complimentary and most of the guests would end up eating at the in-house restaurant. And on most days, in a typical hotel, there would only be a small majority of non-guest walk-ins for breakfast.

So shouldn’t the hotel/restaurant try to understand what the guests would like for breakfast? Well I guess if I recommend this to a 5 star hotel, they would say “Sir, our breakfast spread has been carefully crafted after years of research on what our guests typically like. Thats also the reason you will see so many dishes and cuisines. We really care about what you want… Blah Blah Blah”

But consider this. There might be a Bollywood festival in town and suddenly there are more Indians who want Aloo Parathas.Or a Tamilian wedding with guests staying in the hotel, who would all love a dosa.

Well it need not be so drastic, but wouldn’t it be great if the restaurant could ask me what I would like to have. And then maybe come up with the dish over the next few days of my stay. If there are others who like it. Would it not make me thrilled, would it not make me feel special. My guess is it would.

It would also make the chef’s job so much more challenging and exciting.

And also allow the hotel to stay connected with the guests – guests are not just a room number or ID in their CRM systems.

What do you think?

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Image Credit : http://mashable.com/2014/03/19/dinner-lab-crowdsourced-restaurant

School for future politicians

I was super excited by the political experiments that were happening in the capital when Aam Aadmi Party was launched after the successful India-Against-Corruption movement. But my excitement didn’t last too long.

Personally, I felt sad that the Kejriwal goverment decided to quit. As an observer and eternal optimist I was hoping that this experiment would last longer. My own random ideas of what happened/should have been done e.g. –

  • AAP should have just focused on 2 or 3 problems and delivered on them.
  • AAP didn’t seem to have a first-100-days plan in place – I guess they were never hoping to form the Delhi Government
  • One cannot open up multiple simultaneous battle-fronts. You can not alienate everyone and make blanket accusations. They seem to have been in a continous conflict with almost everyone.
  • As a disruptive force their tactics were suited to be a good opposition player but not as the party mandated to lead the administration.
  • They needed a Chanakya – a sound strategist – who could make sense of all the chaos they were in and maybe compounding day-by-day
  • People will start discounting your words if you just keep on complaining. Share some good news, be generous in showering praises too. They failed miserably in doing so.
  • As a leader you cannot be dragged into every debate. You don’t need to respond to every accusation and charge. All extremes are bad. A prime minister who doesn’t say anything is as bad as a chief minister who talks way too much.
  • And many more…

But one thing was very clear. In the Indian context someone who understands the beauracracy might not always be a good leader. Difference between working and getting work done.

School for Political management

 

And hence I thought, why don’t we have a School for Political Management – something which arms future political leaders with the right kind of tools, skills, exposure. A school whose core objective is to churn out graduates who would be comfortable in the political arena, who would “understand the system” and hopefully bear strong moral and ethical standards.

I see it as a good business proposition. Imagine the kind of demand from political families where politics is what the next generation is supposed to get into. Its what the local strongmen would want to go to, to polish their rough edges. The school would give all graduates vaccinations against Foot-in-the-mouth disease, that plagues some of the top wannabe leaders right now.

The school could have an interesting mix of curriculum:

  • Indian Constitution and Law : Hopefully any grad from the school who takes charge of law ministry, would know that they cannot summon the judges. The Judiciary is not under their “control”. As the democracy matures, lawyers will continue to play an increasing role in politics. A strong understanding of the law can help draft stronger policies and hence action.
  • Basic Management principles : Esp stuff on leverage, delegation etc. As a minister, you cannot do all the work on your own. Your ministry is effective if you focus on removing hurdles, drafting right policies & programs and empowering an efficient administration that delivers on the ground results.
  • National and Political History:  Way too many lessons to be learnt from domestic and global history. There was a time when Lalu Chalisa was sold at Bihar railway stations and if someone had ever suggested that Lalu might be jailed, it would have been a case of very vivid imagination.
  • Public Speaking
  • Internships: Work along with a state or national level minister. Understand first hand the challenges in the ministry, how the administration works. There is considerable merit in the age old Marwari tradition of letting the next generation dirty their hands as an apprentice before they take charge of the business.
  • And since no college is taken seriously unless it has some global affiliation – this school would have tie-ups with the leading counterparts in other countries. Special sessions with visiting Presidents/Prime Ministers would be arranged – given that this college would produce tommorow’s leaders – it should not be impossible to arrange.

So what do you think? Would this help? Should it be a 1 year or a 2 year course?

How do we screen the candidates? Coz I believe we would get way too many applicants. And this would surely be a price-inelastic demand.

Impact of un-utilized assets : A Mathematical Model

A few weeks back I was wondering what happens when we buy a car but don’t drive it. While the automobile industry witnesses a growth but is it something that increases the drag on the economy.

I spent a few hours to work on a very simple model to find what happens in various consumption scenarios.

Approach:

I had to create a simple-one -product economy. Hence  I assumed that

  • Our economy produces cars each worth Rs 12 lakhs.
  • Average utility lifetime of the car as 1lakh miles
  • Additional spends required based on consumption as 5 Rs per mile

I also simulated 6 different scenarios from a household’s perspective. namely:

  • Scenario 1: Normal usage. Uses for full life of the product
  • Scenario 2: Stops using after a time. Does not sell it or buy another
  • Scenario 3: Stops using and sells it off but doesn’t buy another
  • Scenario 4: Stops using, doesn’t sell and buys another which is used
  • Scenario 5: Sells this and buys another which is used
  • Scenario 6: Doesn’t sell, buys another, stops using that also and buys a 3rd

Once these assumptions were plugged in, I calculated a few ratios and interesting things emerged.

 Unutilized Assets

  1. The value derived from each product drastically changes between two similar scenarios where the old stuff is traded vs where it is not sold. Does this mean that in a resource constrained economy, a market place optimizes the return of invested resources through higher utilization?
  2. In the scenario 6, income generation is highest for every 1 Re spent by the households. So maybe hoarding is a good strategy when domestic income generation is important. On the contrary imagine if we do this in categories where we import the products – we might be supporting Chinese economy more than we ever wanted to.

Not knowing fully well what these ratios meant, I spoke to my Professor friend Dr Dash who gave some very interesting path of analysis. Essentially what he mentioned was that I should look at this top down rather than at a micro level. He also mentioned about ICOR – Incremental Capital Output Ratio – how much additional capital do we require for each unit of GDP increase. E.g. an ICOR of 3 means we need 3 Rs for every 1 Re contribution in GDP.

  • Assume a market size of 75 Bn USD and lets say one third of this is from private cars. Hence a market of 25 Bn USD
  • Now assume that 5% of all cars produced in a year lie idle, which means about 1.25 Bn USD worth of cars remain idle. (and this is incremental value of locked capital every year)
  • So with an ICOR of 5 , these un-utilized cars translate into 6.25 Bn USD worth of capital that is “wasted” every year.
  • But where it became tricky for me was that whether the asset is utilized or not, the GDP is impacted depending on ICOR. So is this a case of smarter capital allocation? Would this “wasted capital” helped us in producing some other more needed product or service?
  • A very interesting and probably extreme case of this top-down analysis would be the scenario where the asset is imported. In such a case, a reduction in “wasted capital” would result in better trade-balance
  • With a marketplace, if 40% of these cars are sold in the second-hand market, then we free up that much capital.
  • Moreover with cars available at a lower price, many category shifts might happen. E.g. say a Maruti Alto being sold in the second hand market might attract a person who was in the market for a 2 wheeler earlier.

TripAdvisor feature – add professional profile and ratings

What makes TripAdvisor a preferred choice in the process of identifying a hotel to stay at is the rich guest-feedback and reviews for most of the listed properties. The stuff about getting addresses, details, baking in a booking engine has been done by very many, but where TripAdvisor leads the pack is this recommendation layer built on top of this aggregated data.

This recommendation layer is what helps us in not only discovering but also deciding on the hotel/restaurant we want to go to. It also gives you a place to comeback and share your own views – which hopefully can influence future decisions. Which gives us a sense of being in control, of being an influencer of sorts

TripAdvisor’s recommendations product is indeed a very mature offering. They have baked in reviewer’s authority, social graph ( it shows reviews from your network clearly marked) etc.

But there is one huge opportunity which is clearly missing – Individual Professional profiles for the hospitality sector.

Let me explain this in detail.

We all know from our past experiences that the key to a great experience is much more than the architecture, luxury, ambiance etc- it is the staff which finally brings all of these together to give us a great stay. Right?

There have been times when I stayed in a great property but the staff just failed to step up to the expectations. On the other hand, some of the best times I had was when I was backpacking and staying at guest-houses and probably half star rooms in Rajasthan. The human connect is absolutely critical.

If this assumption is valid, shouldn’t we help build reputation for the hospitality sector professionals by sharing our feedback? Maybe we should avoid writing it when its an overall negative experience, but why wouldn’t I do it for a great manager/waiter?

A recent experience confirmed the need for this.

We were out on a road trip to Agra/Mathura/Vrindavan and my brother found this incredible property in Vrindavan (and not through Trip Advisor). We checked out the next day and in the whole confusion of getting all 11 people and their stuff together, my brother forgot his wallet at the reception.

We were on our way and almost back on the highway when the manager called to tell us about the wallet. On his own he checked where we were and sent out his guy on a bike to deliver the wallet. Kept calling us to check if we got it or not. When my brother called him up to say ThankYou, he just asked if we would write a positive review on TripAdvisor.

We did, but guess who gets the 5 star rating? This manager got mentioned, but he would get drowned in the list of fresh or helpful reviews that would float over my brothers review of the property.

trip-advisor-ratings

Look at the image above from Dusit Devarana’s page. These are the top 2 reviews showing and one can see Varun Kutty being mentioned – unfortunately one guest got the name wrong. Many other reviews don’t mention Varun. Wouldn’t Varun love to have a small place on TripAdvisor which shows a summary of only those reviews which mention Varun. That would be a personal trophy for him – one that keeps getting bigger day-by-day !

Also given the churn in the hospitality sector, this manager would probably move to a new location and while he might dig out the review and show it during interviews, it might not be a compelling argument in his favor.

What if,

  • TripAdvisor allows hospitality sector professionals to build Linkedin kind of profiles
  • A guest who is reviewing a property can also mention the specific staff members who influenced their experience
  • Maybe we would want to keep the personnel mentions for positive reviews only- hence trigger the prompt or tagging option only when the rating is 4 or 5.  I would want to do this to keep the negative reviews out, which are rarely written objectively.
  • Aggregate the reviews/ratings mapped against the professional and show it as a summary. Also show this in combination with the property or brand they were associated with at that point of time.
  • This profile could also be used as a proxy for background/reference checking. Hospitality sector suffers from a very high level of CV fraud and most of those pertain to prior experience.
  • This would also get the hospitality staff fully integrated to the TripAdvisor platform. They might not feel the threat of competition right now, but this would help build a very strong hurdle against any future threat.

In my opinion, this would also motivate the staff to invest in each interaction they have with guests. The gap is that this would end up catering to the front-end staff only and miss out on the back-end folks. Very few people ask for the chef’s name at a restaurant if they have had a great meal.

Why I use Paytm for all bill payments except Airtel

Consumer behavior used to be a course that marketing folks took in 2nd year of Bschool.

I stayed away , like most other marketing courses.

But over the years, time and again I have seen the importance of understanding the consumer behavior – why do consumers behave a specific way, why and how are habits formed, are all habits sticky, what would prompt a habit change and so on.

My Online Bill Payments Behaviour

Recently I just noticed something interesting about how I pay my bills. It brought up the importance of consumer behavior yet again.

So here’s what happened.

Every month I end up paying some 5-6 different mobile/landline and a couple of DTH bills.

A few years back I started paying the Airtel bills online – the process was easy and it was the same interface for all Airtel Payments – mobile or landline.

Just one drawback – there was no “Make another transaction” button.

One had to go back to home page, and start the flow again. I shared this with my friends at Airtel Money and quite a coincidence that this button was added on their web page (they confirmed that my raising it with them had nothing to do with the feature going live).

Since then its been how I have paid all my Airtel bills.

PayTm bill payment
On the other hand, my experience with TATA Sky’s online payment was horrible to say the least.

During one such failed attempt, I remembered about Paytm and decided to use it.

And boy was it an amazingly designed service.

  • The UI was really neat and intuitive.
  • Credit Cards were masked and stored for easy subsequent payments. One just needs to repunch the CVV and the Verified by VISA passwords.
  • Old payments were stored and it was super easy to bring up an old payment and make a fresh one against the same DTH/mobile account.
  • In case of a failed payment to the service provider, the amount is kept in a Paytm virtual wallet that is “automatically”(this is true customer delight) picked up first during any subsequent payments and only the delta amount is required to be paid by the card.

Needless to say my bill payments have migrated to Paytm .

But not all.

I suddenly realized that my de-facto reaction when making the Airtel payments was still to go to the Airtel website and not PayTm. This was strange because from a rational perspective I had no reason to not switch my Airtel payments also to PayTm.

And this got me wondering.

  • I am not really loyal to the Airtel website, its just a question of habit I guess. Its not a strong habit to the extent that one can explain it through muscle memory. But the reality is that I followed the above steps without thinking much – picked up the bill, went to the Airtel site, paid and got it done with.
  • Is my behavior sticky with Airtel because they managed to get to me first and delivered a decent experience? If yes, then the first-mover-advantage for consumer services should be the possible stickiness-hurdle it creates for new entrants.
  • Has PayTm got me as a dedicated customer for their wallet services? Would I choose to pay at lets say Myntra (flipkart has its own wallet and Snapdeal is working on one) through a PayTm wallet? I am not too sure.
  • Although I am an avid Android user with a lot of apps that I use regularly but I still don’t have the PayTm app on my phone. Why? I am not sure. But I remember seeing their messages online and have seen their app in the Google Playstore also. Again no logic to explain this behavior. Wouldn’t the guy in charge of Data Analytics at PayTm be looking at my profile and thinking this guy probably doesn’t have a smartphone or a 3G connection.
  • Now that I have spent some time thinking about my strange behavior, would I go back to the Airtel site or migrate to PayTm? What do you think?

UPDATE

I have long since downloaded the PayTm app and it is now the default way to make ALL bill payments including the Airtel one(s). I no longer wait (or bother) for the bill to be delivered – PayTm manages my bill presentment and payment experience end to end.

How to save the Boiling Frog?

Boiling-Frog
Source:inflexion-point.com

We have all heard about the boiling frog phenomenon – Put a frog in boiling water and it would immediately jump out. Instead keep a frog in cold water and heat the water slowly, the frog would just boil to death.

While I don’t know if this experiment was ever done or not (one guy actually tried it and uploaded a YouTube video), or whether the frogs of today are smarter than their ancestors, but the underlying phenomenon is all too common in the corporate world.

Companies fail to see the “inevitable change” in consumer behavior. They fail to notice or counter the growing might of a competitor.  More often they fail to see the gradual but sure detoriation in culture, motivation of their teams. All because it happened gradually.

So I was wondering what are the ways to avoid a Boiling Frog phenomenon?

  • Get a frog from outside every once in a while : No brainer right? A frog which is not in the gradually-heated-waters would know that there is something wrong. The water is already too hot and they should jump out. Why then do most companies shy away from bringing in fresh talent? Why do we feel afraid of getting people from diverse backgrounds – unrelated industries, different academic, economic and cultural backgrounds.
  • Have a thermometer track the temperature : Consumer surveys, market research, risk metrics, red flags etc – we do it all , still this happens – you would say. Well, sometimes you need a frog who can read the thermometer ! Would you want the frog to see just the temperature, or would you want to show how much temperature has risen, or show that its now in the danger zone or better still sound an alarm loud enough that makes the frog jump out of water 🙂
  • Let the frog see that the water is being heated : If our frog was smart and put in a transparent container, chances are it would see the flame or the burner. It might also note the rising temperature in the thermometer even if it doesn’t feel the heat yet. Will it help business leaders if they have real-time feed from the market about whats really putting them under stress.
  • And if nothing works, just pull the damn thing out yourself.

Are there other ways to save the boiling frog?

Recommended feature for Google Maps Application

Gratitude First – I am really thankful for Google for the traffic layer on its Maps application. Like most others in Delhi, I have become a regular Google Maps user now, checking the traffic updates and choosing the route that I should take to reach my destination. So much so, that my driver also insists on it.

I started tracking my typical usage behavior and interesting things surfaced. I would open the application if:

  • I am going to a new/unusual place or
  • To the usual place at a not-the-usual time,
  • I don’t know the route or the traffic conditions or both
  • Faced with a traffic build-up on my usual route to work(or back) to see how long the jam was and what was the situation on alternate routes

And amongst the situations listed above, almost 90% of my usage was due to the last one – traffic buildup ahead of me on my usual route to work or back home.

Also, since my daily commute is almost 40kms one side, many a times there are multiple congestion points that I encounter. And some of those develop while I am on my way. Hence even if I check the traffic at point A and see that everything is clear downstream, chances are that the situation would change when I reach the downstream point B.It can be very frustrating, trust me.

There’s another scenario that kicks in – given the resolution at which maps open up basis my current location, I need to scroll a lot to check out the whole path. Many a times I miss out checking the traffic congestion at far-off points.

google-maps-traffic-layerAnd this set me thinking – wouldn’t it be a great feature for Google maps to

    • allow me to set my usual route for work/home
    • jump directly to my route showing the areas with traffic build-up or

better still, alert me even without my opening the Google Maps app that there are places where there is slow traffic. This would have been true delight.If this is possible, can we build a web-app to send traffic updates to people who do not have a smartphone. Can such users register their routes and get SMS updates? Why not?

As I toyed with the idea, I started wondering, why hasn’t Google done it already.

This is a very simple and intuitive need, surely someone at Google would have articulated such a need long time back.

So I started understanding how Google Maps work and what I discovered in a quick 2-3 hours of research was the following:

  • Google has a similar feature (time to destination – work or home) in its Google Now set of widgets. But its not really the kind of delight that I was referring to.
  • Google might not want to do it – Google collects and calculates traffic data from users who are using Google Maps and sending their locations to the Google servers. This means, Google would always need higher number of users to stay-on with their Maps/location services for them to get more data-points to have a better traffic estimate.
  • And maybe independent developers also cannot do it – The Traffic heat-maps are a “layer” on the Google maps and they are provided in a similar way in the API – a visual layer that sits on top of the geographical UI. This means that any developer would not get a feed of locations/latlons along with the traffic feed. To develop the kind of app/feature I referred above, the Google traffic API would not be helpful.

 Update:

With today’s experience I think Google should still go ahead and build this feature. I now feel that this feature would kick-in more signins into Google Maps. Why?

If I get an alert that there is traffic in my usual path and the alert doesnt mention the specific points, I would be tempted to login into Maps and see where the blockage is. What are the alternate routes and what is the situation there.

One challenge here is that not every one might have their GPS on and it might be tough for Google to know if the person is already on the move or not. It could choose to send these alerts only to those with GPS on. This would serve two purposes – more people would keep GPS always on, hence provide the feed to Google’s server to better calculate traffic pattern. Also with the GPS on, Google would know when the user is on the move on the pre-defined specific route.

The car you bought but don’t drive, hurts the economy

While on my evening walk I recently noticed an old Mercedes gathering dust in the neighborhood – the car hasn’t moved in the last 10 years. Or maybe more.

While this rude treatment meted out to the Merc pained me,  I noticed that there were many other cars which had rusted completely just being parked out in the open.

So I asked my economist wife – what is the impact of such reduced life cycle of an asset on the overall economy.

Unused Cars

What I was thinking was this:

  • At an individual household level, this was clearly capital being blocked or even wasted. As the same could have been re-utilized in buying another asset or investing elsewhere.
  • At a more macro level, the automobile industry was not really a loser. They might end up selling more cars if many individual households just buy cars and don’t use them. So where in our country’s GDP calculations would this waste be accounted for.
  • A car that is used regularly results in more spends – on fuel, maintenance, tires etc. All of which stimulates the down-stream industries and hence positively impacts the economy.  Discounting the fuel-price etc. So does it mean that if a society in general fails to extract the true value from its assets,it fails to stimulate the ancillary industries sufficiently? If so, would this apply to apparels and other items we usually stock?
  • The fact that the car was not sold-off meant that the supply was reduced in the 2nd hand car sales market. Does such a trend result in higher prices in the used-cars market? Would selling off an un-used asset lead to higher supply and hence a more vibrant used-assets market? if yes, then maybe a Quickr or OLX should pitch to the finance ministry and get some more funding.

Too many questions and the wifey says that its way too complicated for me to comprehend. So while I work on a mathematical-excel model to quantify this, do share your point of view.

Would our economy have a positive impact if we would learn to extract more value from each of our purchases.