I just cruised over to the USA Today Sports section and noticed two headlines. One above the other.
The first states, “Capitals Ovechkin Signs 13 year, $124 million extension” the others states, “MLB, NFL each give $3 million for steroid research.” Need I say more?
Its sometimes hard to know what the market wants. Sure fans don’t want steroids (or to know about them), but they do love home runs. The real question is whether they really, really value ‘clean athletes.’ Judging by the circus of the Mitchell Report and this paltry $3 million (no doubt these will be ‘charitable’ contributions and counted against profits in some way), it appears the owners of major sport teams and their agents (league managers) are going to try to PR this problem rather than solve it.
Reminds me of all the ‘green’ commercials we are now seeing on television. Am I really supposed to believe GM is a leader in alternative methods b/c they are running tons of ad spots. Or that the 12 year old girl in the Hybrid Ford Escape commercial can’t read and never knew her dad’s car was a hybrid? Sorry, but that commercial gets me — and apparently I am not the only one. Watch it here.
Back to the point, the key to entrepreneurship is really knowing if the signals the market gives off are real or not. Do customers really value what they are claiming to value. Those who uncover the demand, the real demand, and fulfill it will achieve great returns. Those who misjudge the noise may be stuck pushing fruitless ad campaigns and buzz word filled press releases, while those who get it will sell product (toyota).