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This is plainly wrong. Rockefeller started dealing in oil because the unit economics were excellent, and because he recognized that no dominant players had emer
by loeber 9y ago
This is plainly wrong. Rockefeller started dealing in oil because the unit economics were excellent, and because he recognized that no dominant players had emerged in the market yet, opening it up to vertical & horizontal integration (both of which he executed flawlessly).
Furthermore, asserting that indoor lighting was a toy -- in an age where other light sources were dim, prohibitively expensive, or excessively smoky -- seems mistaken to me.
- brucephillips 9y agoI don't see how desirable unit economics refutes GP's claim that the initial market was lamp oil.
- afarrell 9y agoIt doesn't, but the lack of other good sources of indoor lighting refutes the claim that the lamp oil market is a toy.
- hnzix 9y ago> refutes the claim that the lamp oil market is a toy. GP never made that claim. The point is that lamp oil was perceived as a toy before people realized the (blindingly obvious in hindsight) utility for indoor lighting.
- afarrell 9y agoWhat did they use lamp oil for then? I thought lamp oil was always for indoor lighting...
- turingcompeteme 9y agoHow about this: oil was being given to kids to play with when Rockefeller was getting started. Yes the economics were excellent. But very few actually wanted it for years. Oil was fun to set on fire, but hadn't found mainstream use yet. Rockefeller created and dominated the market. Many of Rockefeller's early writings were about his frustrations of oil not being taken seriously. And he definitely agreed with you that it was a mistake to see oil lamps as toys.