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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. Since 2000, the Chinese economy has been growing at an increasing rate — from 6% per year in 2000 to 12% per year in 2010. Strategies to Implement Now.

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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

From my experience heading Scotland’s National Health Service from 2010 until last August (and before as its director of health care policy and strategy), I know that such constraints can unleash innovations that will lead to better care — and better health — for communities. Working under a fixed-cost ceiling was, of course, difficult.

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Who Rules the Web Now?

Harvard Business Review

Wired reported late last year, "The top 10 Web sites accounted for 31% of US page views in 2001, 40% in 2006, and 75% in 2010." As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero.

CPA 15
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The U.S. Media’s Problems Are Much Bigger than Fake News and Filter Bubbles

Harvard Business Review

” During the volcanic ash crisis of 2010, what it offered wasn’t prize-winning stories about the roots of the eruption or its health implications, but an app (Hitchhiker’s Central) that allowed readers to share travel plans and offer rides to each other. Fixed costs have always been central to the economics of media.

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