Christmas tree prices can teach us to think strategically

I didn’t know it takes 10 years to grow a Christmas tree. 10 years! It can’t be cheap to buy a new one every year. No wonder so many people use an artificial tree like my family does.

A real Christmas tree is definitely not something you want to spend money on when things are a bit tight. In fact, tree planting plunged back in 2008 because of the financial crisis. People just cut back on these kinds of luxuries.

So what happens when you cut back on producing a product that takes a decade to make? Fast forward 10 years and in 2018 Christmas tree prices surged. They cost you a whopping 50% more compared to 2012.

This is a great example of microeconomics in action. It also got me thinking. I wonder how many business people consider the strategic implications of certain events for their industry. Especially when it comes to longer term trends and events that have ripple effects over time?

Taken a step further, how many people look beyond their current job and evaluate their career path against economic, social, political and technological trends?