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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

This trend is unsustainable. 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.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.

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Research: Cloud Computing Is Helping Smaller, Newer Firms Compete

Harvard Business Review

Despite those trends, our research suggests that technology can in fact provide an advantage to small and new firms. By cutting the fixed costs of computing — avoiding the need to hire IT staff, servers, and hardware — even the smallest firm can satisfy large and unexpected computing needs. businesses.

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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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