Business Lessons from American Gangster

By -
I've planned to write something about the film "American Gangster," starring Russell Crowe and Denzel Washington, since I watched it last month. The film is set in the 1960's and it is about the rise and fall of an American drug dealer.

Apart from enjoying the film for its artistic and creative merits, I've learned to appreciate and pick up a few business insights that aren't too different from what I've been learning in the MBA program. People have picked up business lessons from movies like "The Godfather," (Here's one and here's another) so here's my take on Business Lessons from American Gangster (there are some spoilers though):
  • Master the supply chain - In the movie, drug dealer Frank Lucas (played by Denzel Washington) was able dominate the Harlem drug market by finding the right supplier and finding the right means to get the goods to the market. Lucas traveled to Asia and found quality contraband and used U.S. military planes to hoodwink U.S Customs in getting his products to the market. His strategy was to make his supply chain as lean as possible.
  • Brand matters - Speaking of products, Lucas branded his drugs "Blue Magic," and it was about ten times the quality and purity of the normal heroin being peddled on the market for half the price. He effectively differentiated his products from the pack and became the preferred "hit" for the junkies. To the customers, Blue Magic meant unparalleled value for money. The success of the brand even prompted competitors to infringe on the "trademark."
  • Manage risks - What ultimately led to Lucas' business downfall was the end of the Vietnam War as the military planes were grounded and his strained relationship from his government (police) backers. I guess every business deals with government and externalities, so risk mitigation and a sound exit strategy are musts. Had Lucas been able to create a alternative distribution links and played the government's game, he would have been able to create a sustainable enterprise.
If you ask me, there's more to pick up from American Gangster and I'll leave that to you to find out. :)

Comments

Anonymous said…
Interesting, ha. I never thought of analyzing the business concepts behind this movie. I thought it was marginally overrated actually. Yourself?
http://www.threesavvysolutions.com
April 30, 2008 at 8:17 PM
Post a Comment

Popular posts from this blog

Getting Admitted to the MBA Program

By -
Let backtrack a bit: How was I able to get admitted to the Asian Institute of Management (AIM)? The admission process is a relatively brief process, but rigorous nonetheless. The AIM Website outlines the procedure on how to apply and the requirements as well. However, I found some old content at the AIM site that might get some users confused. But in spite of that, my experience in applying was a very smooth and hassle-free one. I made sure that I had the following accomplished: Application Form - This can be downloaded online . The application form is very long and has 14 essay questions! It is better to answer the essay questions briefly and direct to the point. Official Transcripts - This is my undergraduate transcript from the University of the Philippines - Diliman . Academic Recommendation Letter - I had a former professor of mine from the Ateneo Graduate School of Business accomplish this one. Professional Recommendation Letter - I asked a former superior make a recommenda...
Read more

My Experience with the Embassy of India in Manila

By -
Image
Are you a Filipino going to India? Be warned. You may be in for a great deal of frustration. I've been spending the past week arranging my visa for my Action Consultancy (AC) in India. (The AC is equivalent to AIM's industry internship for its MBA students; I'll blog more about this in future posts). The frustration has really been mounting because of the very confusing and Byzantine system of the Indian embassy here in the Philippines. First point of frustration: the customer service. I initially called the embassy to clarify the requirements and procedures. The embassy has an automated answering system that has a selection where a caller can get an itemized list of requirements. That's all. No information of procedures, steps or guidelines. I selected the option to talk to a staff member and when I asked my query, she told me I'll find everything I need at the Indian Embassy website . If you look at the site, there are some information, but not the ones I'm lo...
Read more

Asian Institute of Management in India?

By -
I've been following the "new campus" moves of the Asian Institute of Management as of late and while I said my piece a while back, there was some development that reached the media last week. I've speculated that AIM's new campus may be outside of the Metro Manila. But how about a new campus outside of the Philippines? President Francis Estrada said in an interview with Business Standard : AIM is an Asian Institute and is not just for the Philippines. We are thinking of creating campuses beyond the capital Manila and are looking at proposals to establish presence in India. My take on this is that from a strategic point of view, it's pretty sound.The Indian graduate education student market is very huge and talented and AIM had seen a big growth of Indian students since the start of the 2000's. Here's a fact: For the MBA program, the Indian population in AIM has steadily grown and if you compare the 2001 class to our class, the Indian percentage o...
Read more