Harvard Business Review

JANUARY 22, 2015

That’s when the company suffered through the Quikster controversy and a protest over its price increase. I was in the minority when I wrote that the price increase was a good thing. For that to happen, consumers must know their demand for a product or service is predictable and likely to go up.

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

SEPTEMBER 5, 2016

Pearson, the educational publisher, measures the efficacy of its products to improve educational outcomes. Cigna is the first insurance company to get pharmaceutical companies to agree to value pricing based on results for certain cholesterol-lowering drugs. Making PbR Work. ” Health care. ” Health care.

Incentives 8

Incentives Health Care Education Insurance 8

Harvard Business Review

JUNE 22, 2015

To our surprise, it sold in 20 minutes for 25% more than the asking price. Then, companies tend to overcompensate by stopping or increasing production lines, and inventory levels can fluctuate wildly. Product overstocks result in discounted prices, which are usually about half to two-thirds of the gross margin.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

Harvard Business Review

AUGUST 30, 2016

Brick-and-mortar retailers who found it hard to compete on price or variety highlighted that customers could immediately pick up products in their stores instead of waiting for days. How can Amazon deliver thousands of products to millions of households within hours when other online businesses take three to five business days?

Advertising 8

Advertising Retail Content Brand 8

Harvard Business Review

SEPTEMBER 4, 2017

Disruptive products and services were, by definition, cheaper, lower quality, and lower margin. If you were running a profitable business with growth opportunities from an existing customer base, it was unlikely that you’d prioritize building low-quality products for over-served customers at lower margins. They are asset-light.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

JANUARY 10, 2013

The opportunity may entail: 1) pioneering a truly innovative product; 2) devising a new business model; 3) creating a better or cheaper version of an existing product; or 4) targeting an existing product to new sets of customers. For example, a new venture might employ a new business model for an innovative product.

Definition 10

Definition Entrepreneur Tactics Business Model 10

Harvard Business Review

MARCH 28, 2016

These card networks were allowed to charge their members just enough to cover cost and provide working capital. That standard may then become a platform for many firms that produce complementary products and their customers. For more on this, read Dee Hock’s book about starting up the Visa network.). Insight Center.

IPO 8

IPO Succession Technology Software 8

Harvard Business Review

JULY 10, 2013

He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. He offered the product to small businesses, and customers lapped it up. And play he did. Acquisition offers started floating in.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

APRIL 5, 2017

For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Corporate culture. One way to gauge this is in how a firm treats its workforce in bad times.

EPS 9

EPS Metrics Depreciation Short-term 9

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

APRIL 12, 2017

In 2015 low- and middle-income families devoted about one-third of their earnings to housing, and they have seen housing prices rise 25%–50% since the mid-1990s. When a business, rather than a household, faces such volatility, it responds by building up working capital. It doesn’t have to be that way.

Health Care 14

Health Care Insurance Video Transportation 14

Harvard Business Review

FEBRUARY 7, 2017

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). During the last financial crisis, for example, they saw their share prices take greater hits than their short-term counterparts.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

JANUARY 9, 2013

He is now pursuing grant funding, which he believes will address these issues and will enable his business to expand its product lines. For example, Roberta has to decide whether to discount services to hospitals too poor to buy them at a profitable price. Why Has Roberta's Company Scaled While Adam's Hasn't? Or keep margins healthy?

Entrepreneur 9

Entrepreneur Business Model Long-term Goal 9