Harvard Business Review

MARCH 28, 2011

What would happen to their costs if the renminbi's value rises overnight from RMB 6.5 How would they cope if the price of oil quickly jumped to $150 per barrel? When shortages persist, only their competitors will pay the price. Companies keep costs down by building supply chains that generate economies of scale.

Supply Chain 15

Supply Chain Fixed Costs Price How To 15

Harvard Business Review

JULY 22, 2011

It is walking, talking, and continuing to pretend it's alive, but Spotify , Europe's outrageously successful streaming music product, has just shown us the future. To appreciate the truth of this claim, it's vital to understand one of Clayton Christensen's theories on marketing and product development: Jobs-to-be-done. Enter iTunes.

Christensen 16

Christensen Disruptive Innovation Price Business Model 16

Harvard Business Review

AUGUST 16, 2011

First, when a business is impatient for profit, managers are forced to validate their assumptions and demonstrate that customers are fundamentally willing to pay an acceptable price for the company's offering. Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

Christensen 19

Christensen Fixed Costs Metrics Venture Funding 19

Harvard Business Review

OCTOBER 6, 2014

It provides consumers with a viable, lower cost alternative to the manufacturer branded products. There have always been convenience stores in the UK, but the shabby, independent corner shops are giving way to sparkling new outlets run by the supermarket chains full of fresh merchandise, albeit at premium prices. billion to $8.6

Retail 11

Retail Merchandising Discount Price 11

Strategy Driven

AUGUST 29, 2021

Revenue might be deceiving since it hides margins, fixed costs, payment fees, and shipping charges. Other costs, profit margins, and product margins are all factored into the equation, allowing advertising to be completely open to all stakeholders. How Does Profit Bidding Differ From Revenue?

Strategy 95

Strategy Budgeting Advertising Fixed Costs 95

Harvard Business Review

MAY 28, 2018

Nikon watched its profits sink and its stock price at one point fell below liquidation value. The right investor base can improve stock price, reduce volatility, and provide valuable feedback. They had surged with the rise of digital camera only to peak in 2012, coming back down as smart phones became widely used.

Company 8

Company ROIC CFO Restructuring 8

Harvard Business Review

DECEMBER 17, 2014

Eden McCallum, thus, manages to keep its overhead and other fixed costs at a minimum. Consequently, they are able to offer their teams of consultants at comparatively low prices, while customers are happy that the senior people actually do the work. (A This allows the firm to hire good employees at a good price.

McCallum 13

McCallum Competitive Advantage McKinsey Consultative 13

Harvard Business Review

MAY 21, 2015

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

MARCH 1, 2018

This trend has important ramifications for the out-of-pocket prices (e.g., A growing body of research says that insurers raise out-of-pocket costs in part to avoid sick enrollees. The first cell-based gene therapy approved in the United States, it has been priced at $475,000 for a course of treatment. health care landscape.

Cost 8

Cost Insurance Incentives Policies 8

Harvard Business Review

OCTOBER 13, 2015

These include the widespread adoption of health plans like Silver plans on state exchanges that require subscribers to share at least 30% of the costs up to a specified limit and the introduction of technology to allow consumers to make informed decisions such as Castlight Health’s price-transparency tools. Insight Center.

Health Care 8

Health Care Insurance Price Cost 8

Harvard Business Review

AUGUST 17, 2012

You could argue that Cipla's formula is simply to piggyback on other companies' products, so it doesn't have to pay for R&D. You could also argue that since Cipla produces many of its products in India, they pay less for labor and don't have to worry about quality. and other traditionally developed markets.

Company 11

Company Pharmaceuticals Business Model Fixed Costs 11

Harvard Business Review

MARCH 28, 2014

The theory of disruption explains why incumbent businesses – with high fixed cost infrastructures and embedded beliefs about what the market wants – fail to adopt business models that lower the cost of their services and drive product accessibility to entirely new sets of users.

Disruptive Innovation 8

Disruptive Innovation Automotive Software Fixed Costs 8

Harvard Business Review

APRIL 6, 2016

These conflicting pressures are especially present when the product provided by the asset is not very differentiating (think, for instance, of commodity steel products or container shipping services). The common idea behind these models is that the company does not have to be the (full) owner of the asset to be its (sole) operator.

Co-Opetition 8

Co-Opetition Operations Cost Cooper 8

Harvard Business Review

JULY 27, 2017

And the fixed cost from “touchpoint-to-pilot” are immense. For example, in the case of a $100 million CVC fund, which can close five to 10 investments a year, these costs typically range from $1 to $2 million per startup — not including the administrative and variable costs of the pilot itself.

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

APRIL 5, 2017

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. I have worked on research that has found that a strong company culture is associated with lower levels of myopic decision making, better productivity, and innovation.

EPS 8

EPS Metrics Short-term McKinsey 8

Harvard Business Review

SEPTEMBER 9, 2015

At each tier of the supply chain, the decline in demand sparks a bigger decline in orders from suppliers — each company reasoning that it needs to quickly cut production (to adjust to declining sales) and work off its seemingly bloated inventory. Senate Banking Committee to save his competitors.

Supply Chain 8

Supply Chain Retail Crisis Operations 8

Harvard Business Review

FEBRUARY 24, 2015

These preparatory steps are of particular importance for carve-outs that are not full-fledged business units with profit & loss responsibility, such as R&D centers or production units whose only customer is their parent. ” When it comes to divestitures, bad economics usually get discounted in the transaction price.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

FEBRUARY 11, 2016

Google and Intel rely on experts in social science and biomechanics to develop transformative products by better understanding how people think about and use technology. And in these discussions, most executives acknowledge the tendency to send mixed signals and the impact on the productivity and commitment of external resources.

Agility 8

Agility Organization Resources Bureaucracy 8

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. Pricing matters. Having the right price for a product or service can boost profit much faster than increasing volume. What if we change the price?

Analysis 15

Analysis Fixed Costs Price Cost 15

Strategy Driven

NOVEMBER 28, 2019

If you are selling high-end products, you need to assess whether the area you are about to venture into is ready for these, and vice versa. Lowering costs is one of these and whilst negotiating with suppliers , understand that you probably hold the upper hand. Use the economy to your advantage. Start as small as can be.

Tips 65

Tips Fixed Costs Marketing Cost 65

Harvard Business Review

NOVEMBER 6, 2013

In 1980, the national expenditure on health care in the United States was just over 9% of Gross Domestic Product. This increase has come at a high price, hitting home most obviously in workers’ pay. Working under a fixed-cost ceiling was, of course, difficult. Today it accounts for nearly twice that — close to 18%.

Health Care 8

Health Care Constraint Budgeting Quality 8

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. Pricing matters. Having the right price for a product or service can boost profit much faster than increasing volume. What if we change the price?

Analysis 8

Analysis Fixed Costs Price Cost 8

Harvard Business Review

OCTOBER 29, 2015

On a search of EBSCO’s Business Source Complete , I counted no less than 1,890 articles published in marketing journals in the past 10 years about price, but only 22 addressing package or service size issues. It seems that marketing managers seldom question the product sizes they’ve inherited.

Fixed Costs 8

Fixed Costs Price Constraint Cost 8

Harvard Business Review

AUGUST 11, 2011

While businesses shouldn't react to economic uncertainty in knee-jerk fashion, the recent tumble in equity prices cannot be ignored. Management has made promises to senior executives about what a project will achieve, and fixed costs have built up because they looked prudent in comparison to planned revenues.

Innovation 15

Innovation Fixed Costs Airlines Business Model 15

Harvard Business Review

FEBRUARY 6, 2018

In addition, its broad distribution network aimed at same-day delivery in many markets (through Amazon Flex , its “Uber for delivery” service) may also make the immediate delivery of certain prescriptions along with one’s groceries or other products a reality.

Health Care 10

Health Care Retail Operations Insurance 10

Harvard Business Review

MARCH 21, 2013

and resold at higher prices without the permission of the publisher. To help support his education, Kirtsaeng had family members buy English-language editions of textbooks at Thai bookstores, where prices were much cheaper, and ship them to him at Cornell. After all, Kirtsaeng's family paid retail price for the books.

Price 16

Price Open-book Retail Content 16

Harvard Business Review

MARCH 21, 2013

and resold at higher prices without the permission of the publisher. To help support his education, Kirtsaeng had family members buy English-language editions of textbooks at Thai bookstores, where prices were much cheaper, and ship them to him at Cornell. After all, Kirtsaeng's family paid retail price for the books.

Price 9

Price Open-book Retail Content 9