When faced with the lowest income in the Major League, Oakland Athletics general manager Billy Beane had to think outside the box. Teaming up with an Ivy League graduate named Peter Brand, the two changed the way the league drafts and looks at their recruits. Beane looks for underrated and undervalued players labeled as broken in order to replace the three star players he could not afford. The A’s look for combinations of players at a cheap price that can get the job done and not three new and expensive players to fill in the empty positions. While the team does not agree with one another at times, they work together for the best and win their division. Money plays a huge role in the world, and there is no exception when it comes to sports.
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Cox adds what Schumpeter states “to denote a process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one." Beane did this by buying cheap and selling the players he didn’t need, and his method was proven to be successful. Cox inclines us that “By incorporating statistical analysis, the A’s could create a competitive team within their budget, the analysis also allowed them to avoid bias in selection that would lead to over-valued, underperforming players.” But as the years went on, the underrated and undervalued Oakland A’s soon became a pricy roster and Beane faced the same low salary problem. In order to create a top salary team like the Yankee’s, they need to keep buying cheap, develop the player, and then sell them to teams that need a well balance player. Coxs says, “Another good look at creative destruction is transportation, in the 19th century when the steam engine was first introduced, trains and the railway system took the United States by surprise, enlarging markets, reducing shipping costs, building new industries, and providing millions of new productive jobs.” The internal combustion engine paved the way for the automobile early in the next century (Cox). The need for Americans to have a set of wheels allowed for millions of job opportunities. At one point in the 1920s, the industry had swelled to more than 260 car makers (Cox). This constant loss and creation of jobs can be looked at as a boom and bust cycle. Each time a new product is being created, a boom and bust cycle begins to take action. As that particular product is being produced, the company looks for ways to improve the product so the customer does not get bored. When that stage hits, the downfall happens and waits for a new product to repeat the cycle.
Cox adds what Schumpeter states “to denote a process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one." Beane did this by buying cheap and selling the players he didn’t need, and his method was proven to be successful. Cox inclines us that “By incorporating statistical analysis, the A’s could create a competitive team within their budget, the analysis also allowed them to avoid bias in selection that would lead to over-valued, underperforming players.” But as the years went on, the underrated and undervalued Oakland A’s soon became a pricy roster and Beane faced the same low salary problem. In order to create a top salary team like the Yankee’s, they need to keep buying cheap, develop the player, and then sell them to teams that need a well balance player. Coxs says, “Another good look at creative destruction is transportation, in the 19th century when the steam engine was first introduced, trains and the railway system took the United States by surprise, enlarging markets, reducing shipping costs, building new industries, and providing millions of new productive jobs.” The internal combustion engine paved the way for the automobile early in the next century (Cox). The need for Americans to have a set of wheels allowed for millions of job opportunities. At one point in the 1920s, the industry had swelled to more than 260 car makers (Cox). This constant loss and creation of jobs can be looked at as a boom and bust cycle. Each time a new product is being created, a boom and bust cycle begins to take action. As that particular product is being produced, the company looks for ways to improve the product so the customer does not get bored. When that stage hits, the downfall happens and waits for a new product to repeat the cycle.