Business
The Airline Industry’s Biggest Winners Are Betting You’ll Pay to Fly in Style. Passengers realize that flying is inevitable almost at least once a year. So they are willing to pay up for the experience. Airlines that can offer a better flying experience have a better chance at maximizing revenue. Plus, they can sell more cobranded credit cards. But it’s not as easy as flipping a switch. You have to order aircrafts and install new features. These are investments. If an airline is in a hole financially, it’s less likely to make such an investment. But maintaining a status quo certainly means going backwards. Just look at low-cost carriers. United and Delta are in a great position.
How Southwest Airlines Lost Its Groove. I remember just a few years ago, we studied the business model and success of Southwest Airlines. I even owned the stock at one point. Where Southwest is at the moment serves as proof that failure to evolve will certainly mean failure to compete and often demise. I wonder if Southwest can turn it around or if it is too little too late. The likes of Delta and United are flying, no puns intended, and showing no signs of abating.
On the Toll of Being a Disruptor. A great read on being a disruptor. Steven offered refreshing historical perspectives of someone who lived through the years of disruption, of an insider, of a seasoned industry watcher.
Target’s Slide From Cheap Chic to Dull Chore. Target lost its identity and has not made a decision on what it wants to be. The shopping experience worsened so bad that it is no longer an appealing place for discretionary and expensive purchases. Groceries are just not what the company wants to do. That’s why shoppers flock to the likes of Walmart, Costco, Sam’s Club or Aldi for groceries and to Amazon for the rest. It’s time for another overhaul by the current CEO Brian Cornell or for another CEO to try his or her luck.
Showtime’s Star-Studded Push to Be Cool Again. “Into this disconnect comes McCarthy, who is fighting against the clock to prove his Showtime strategy viable—and himself more valuable—before a new regime takes over. Next year, Paramount Global’s sale to David Ellison’s Skydance Media becomes final. Speculation about coming upheaval at Paramount—and for current leaders such as McCarthy—is one of the industry’s favorite parlor games. So far, McCarthy’s relentless focus on hits, especially the “Yellowstone” universe of shows, while cutting costs elsewhere, has served him well.”
Other Stuff I Find Interesting
Breaking down the world’s tariffs against China’s tech industry. China has long been relying on exports to grow its economy, more than its domestic demand. I feel that the next couple of decades will be tough for China.
Musk Wants $2 Trillion of Spending Cuts. Here’s Why That’s Hard. Most of the US annual spending is mandatory, leaving just a little up for discretion. You can argue that we don’t need as much money for wars and defense (I’d agree with that), but 1/ noone in Congress wants to look soft on defense and 2/ any cut would be just a drop in the bucket. The same goes for other discretionary spend. I fully believe that DODGE, which would be co-headed by Elon Musk and Vivek, will find and eliminate inefficiencies. I doubt, though, that they would find as much as they claimed. Here is another factor to think about spending. If you can spend a few million dollars in support to an African country to make sure that an infectious disease is cured and eliminated, cutting that support wil create a threat to the US. If you can spend a little to create great rapport with another country, isn’t it better for the country?
How Harry & David Gets 20,000 Tons of Pears to Doorsteps for the Holidays. I did not know that 1-800-Flowers owned a pear grower and distributor.
What Trump’s Immigration Plans Mean for America’s Job Growth. I don’t doubt that Trump and his GOP-controlled Congress will deport a lot of people and shrink the migrant supply pool. What remains to be seen is the impact on the economy. There are projections and theories mentioned in the article, but there are so many moving parts that it can only be evaluated looking backwards. What I think will happen is that people who vote for Trump hoping to lower inflation and give them jobs may be in for an awakening.
An interesting thread on the enormouse size of BYD’s new factory
Stats
Minh Quang Duong 
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