You Bought It. Does That Make it Yours to Sell?

Harvard Business Review

The economic theory is that when different markets have different price sensitivities, producers must adjust their prices to optimize profits. for an energy bar at the airport, which would have cost about $2.00 My willingness to pay the higher price reflects both the convenience to me of getting the bar at the last minute, as well as the fact that the retailer's costs at the airport are likely higher. But for many goods, including books, markets are increasingly global.

Price 17

The End of Traditional Ad Agencies

Harvard Business Review

In every part of the industry, the open innovation model is changing the economics of advertising by switching significant fixed costs to variable costs and sourcing creative from more relevant and, many times, lower cost sources. They''ll also need these networks in order to compete on cost: The open innovation model can shave time and expense off the old ad development cycle. Advertising Innovation Marketing

When M&A Is Not the Best Option for Hospitals

Harvard Business Review

Historically, larger scale has offered hospital systems a number of advantages, including increased referral volumes, better access to capital, stronger pricing power, and classic cost economies. Fix the Handful of U.S. Hospitals Responsible for Out–of–Control Costs.

The Get-Big-Quick Fallacy

Harvard Business Review

If you are inside a big company, profit-draining ventures are typically early sacrifices in corporate cost-cutting exercises. How will you generate enough transactions to cover the fixed costs involved in running your business?

How Industry Giants Can Create Corporate Breakthroughs

Harvard Business Review

For example, a decade ago, it''s unlikely that small-business owners would have told you that they needed a flexible way to host data and applications, one that preferably turned the fixed cost of computer hardware into a variable cost of renting capacity. That''s not as exotic a bet as you''d imagine when you consider that just about every business owner is always looking for increased flexibility and opportunities to make fixed costs variable.

You Bought It. Does That Make it Yours to Sell?

Harvard Business Review

The economic theory is that when different markets have different price sensitivities, producers must adjust their prices to optimize profits. for an energy bar at the airport, which would have cost about $2.00 My willingness to pay the higher price reflects both the convenience to me of getting the bar at the last minute, as well as the fact that the retailer's costs at the airport are likely higher. But for many goods, including books, markets are increasingly global.

Price 12

Revenge of the HourlyNerds

Harvard Business Review

These businesses have powerful disruptive potential because they can provide consulting at a fraction of the cost of traditional models, largely because they do not need to carry expensive fixed costs like recruiting, training, consultant “beach” time, and expensive real estate. HourlyNerd, by encouraging students to bid against each other, likely drives down the hourly cost of projects even more.

Tackling the “Hotspotter” Patient Challenge

Harvard Business Review

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health. The concept is especially applicable to high-cost patients, sometimes referred to as “hotspotters.” High-cost patients experience high rates of turnover.

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

And the same applies to the affected workers: The tight labor market means there are opportunities for those who go through retraining. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. Alistair Berg/Getty Images.

Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

If round after round of profit warnings was not enough – group operating profits fell 20% between 2011 and 2013 and are likely to fall another 30% in 2014 — the company recently announced it had overstated its first-half profit by about $400 million. and spends it in international markets.

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

Harvard Business Review

Political campaigns are marketing campaigns, messages aimed at selling a product. Like marketers, politicians obsess over messaging (what journalists would call “content”) and a few key metrics that historically have determined success: amount of television advertising, number of “foot soldiers,” intensity of get-out-the-vote operations, and voter demographics. Yet by 2004 its market share was down to 3%. Bigger marketing budgets may not pay off.

4 Types of Activist Investors and How to Spot Them

Harvard Business Review

market has witnessed a substantial rise of activist investors. According to Schulte, Roth & Zabel’s Activist Investing 2015 Annual Review, a total of 344 companies worldwide were subjected to activist demands in 2014, up 18% from the 291 recorded in 2013.