Breaking Bad Means Business

Breaking Bad tells the story of a high school Chemistry teacher, Walter White, who when diagnosed with cancer turns to the production of methamphetamine to fund his treatment and ensure his family is financially secure before he dies. The first series premiered in 2008 in the USA, in a time of national recession. This is reflected in Walt's second job working in a car wash. Walter proposes a business partnership with a former student of his, Jesse Pinkman, who he discovers to be a drug dealer.

I recently read an article in The Economist that highlights Breaking Bad's usefulness as a study of the dynamics of a modern business (Read the article here). When looking at the series in from an economic perspective, a different (and slightly less thrilling, some may argue) story can be seen. 

Whilst producing and selling meth he experiences massive amount of both success and failure. As expansion takes place his business employee numbers grow, the majority being distributors. He eventually moves into production on an industrial scale, where economies of scale could be felt, in technology and bulk buying (/stealing) and producing. However, as production continued to grow, diseconomies of scale could be seen. In a dangerous business, high fees such as that as his "not-so-legal-lawyer" Saul and the purchase of a car wash in order to pay taxes so not to raise suspicions. As the business grew, operations seemed to become increasingly difficult. 

He also had product obsession, and focused on a high quality that was differentiated (blue in colour due to its purity). His product, sold under his street name, Heisenburg’s brand became superior to all of its competitors. Walt also became a hugely ambitious businessman, rarely satisfied with his levels of production and earning. The conquering of the meth industry by his “empire business” is compared to Steve Job’s out-competing of Microsoft in the The Economist article.  It may be argued however, that at some points his greed was the cause of many failures (and deaths) within the industry.  Another comparison made in the article is to Bill Gates, in that both came from other careers to bring fresh perspectives to their industries, which led to revolutionary success.

The article also focuses on the importance of partnerships and allies as portrayed on the show. Initially, he allocates his partner to be in charge of distribution to allow him to focus on production and quality control. It shows how that breakdown of work relationships can act as a force of destruction in business, where regular conflict with his partner and distributors occurs. Other forces of business destruction including the problems that arise from a poor work-life balance can be seen, as the situation deteriorates while he attempts to hide his new profession from his wife and family. Breaking bad also gives examples of the importance of being vertically integrated (at different points on the same production path), through Walts relationship with drug kingpin Gustavo Fring.

Gus Fring is another example of a successful businessman, who invests to increase volume of output and, to some extent, achieve productive efficiency. His distribution was efficient, and used his ownership of chicken restaurants "Los Pollos Hermanos" and public support of the DEA to successful export high quantities of meth without suspicion. 

It seems as well as providing a source of entertainment with global success, Breaking Bad has provided a new reflection of the business world.