article thumbnail

An HBR Refresher on Breakeven Quantity

Harvard Business Review

. “It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. If the product has a contribution margin of $5.00 (at the $10.00

article thumbnail

How GE Stays Young

Harvard Business Review

That includes learning from the outside and striving to adopt certain start-up practices, with a focus on three key management processes: (1) resource allocation that nurtures future businesses, (2) faster-cycle product development, and (3) partnering with start-ups. Product development: g etting closer to customers and moving faster.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Accelerating Customer Adoption at the Bottom of the Pyramid

Harvard Business Review

Whether your goal is to tap this enormous, underserved market for a revolutionary new product, or to impact as many people as possible with a novel healthcare intervention , the question is the same. Making drip irrigation more affordable and appropriate for these farmers has been one of my main goals in founding Driptech.

article thumbnail

Obama Gave a Monumental Climate Change Speech, But It's Still Not Enough

Harvard Business Review

Still, if you''re dependent on coal-powered energy — or your value chain is — it''s time to rethink your energy strategy and reconsider the payback periods on clean energy investments. Walmart is the largest private user of solar power in the country, and has set goals to increase that amount 6-fold by 2020.