Aster and Factor Mobility
Aster and Factor Mobility
John Jacob Asters business career was impressive for any number of reasons, but it is most interesting when viewed through the lens of factor mobility. At the time of his death in 1848, John Jacob Aster had risen from a small time piano salesman to become the wealthiest man in America. He did not, however, become the wealthiest man in America by selling pianos. John Jacob Aster owned a variety of business over the course of his career.
Factor mobility is the ability to reallocate resources from one industry to another, as the market demands. John Jacob Aster was very adept at this. He immigrated to America with relatively little wealth, although he did bring with him some musical instruments which his brother had made which he hoped to make a living by selling. Even before the ship he arrived on had landed, Aster began scouting new markets by questioning his fellow passengers. As soon as he discovered that the fur trade was booming, he quickly changed business. He converted the resources he had, pianos, into funds with which he could enter the fur trade and make his name.
Aster eventually became very wealthy through the fur