Harvard Business Review

AUGUST 16, 2011

Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low. Because a business's cost structure determines which customers it finds profitable, keeping these fixed costs low preserves strategic options for the company when it is choosing which customers to target.

Christensen 19

Christensen Fixed Costs Metrics Venture Funding 19

Harvard Business Review

MAY 21, 2015

Over the past two decades, there have been many attempts to reform the electric utility market. Consider how Uber opened up the transportation market. In both cases, the two goods (car and real estate) are given value-creating potential through a process of market fragmentation and consumer empowerment.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

DECEMBER 17, 2014

A five-day work week consisting of eight-hour days happens to be the social norm in many of our societies at present, but I have long thought that a company that disrupts that kind of social norm in its industry could potentially build a momentous competitive advantage out of it. Could an approach like theirs work in other industries?

McCallum 13

McCallum Competitive Advantage McKinsey Consultative 13

Harvard Business Review

JULY 22, 2011

And it could even be thought of as fitting; iTunes accomplished the exact same thing during its early-2000s attack on the bricks-and-mortar retail music industry. Apple set the stage to decimate Tower Records and Sam Goody before either had a clue their industry was about to revolt.

Christensen 16

Christensen Disruptive Innovation Price Business Model 16

Harvard Business Review

FEBRUARY 24, 2015

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

AUGUST 17, 2012

Cipla, an India-based producer of low cost antiretroviral drugs (ARVs) is one of the biggest success stories in the pharma industry. It has doubled its market cap in the five years and sales reached almost $1.5 and other traditionally developed markets. and other traditionally developed markets.

Company 11

Company Pharmaceuticals Business Model Fixed Costs 11

Harvard Business Review

JUNE 4, 2015

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. ” There are plenty of other industries–such as restaurants, barbershops, and health clubs–that can also benefit from surge pricing. I think so.

Price 8

Price Course Discount Fixed Costs 8

Harvard Business Review

APRIL 6, 2016

In many industries, the capital required to build an asset of minimum efficient scale is growing. For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. Model 3: Joint venture of similar assets.

Co-Opetition 8

Co-Opetition Operations Cost Technology 8

Harvard Business Review

NOVEMBER 10, 2016

.” There, in the shadow of Google’s global headquarters, the audience laughed on cue, quickly grokking the embarrassing point: it’s 2016 and this $3 trillion industry that our lives depend upon still relies on faxes, clipboards, and isolated instances of legacy software locked away in hospital basements.

Health Care 9

Health Care Power Hotels Transportation 9

Harvard Business Review

SEPTEMBER 9, 2015

This phenomenon has been documented in the consumer-packaged-goods , food , semiconductor-manufacturing , and other industries. 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. automobile industry.

Supply Chain 8

Supply Chain Retail Crisis Operations 8

Harvard Business Review

APRIL 5, 2017

However, higher accruals can reflect either innocuous aspects of certain business models, such as in the construction industry, where the time lag between earning income and realizing cash is long, or that growing firms retain higher working capital to meet greater current and future customer demand. Are all share repurchases myopic?

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

JULY 27, 2017

Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. And the fixed cost from “touchpoint-to-pilot” are immense. Top startups already have market leading solutions. But only large corporates can offer the last one.

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

OCTOBER 6, 2014

It provides consumers with a viable, lower cost alternative to the manufacturer branded products. Tesco came to the party much later in the 1980s but ended up winning with its “good-better-best” private label lines, setting the industry standard for how to play the private label game. and spends it in international markets.

Retail 11

Retail Merchandising Discount Price 11

Harvard Business Review

AUGUST 8, 2014

So to cover his monthly fixed costs of student loan payments (on more than $100k in debt), rent, and health care he was driving for Uber. Economy Tech industry Technology' He estimated that he spent more than 60 hours a week behind the wheel. They’d benefit my Uber driver, and lots of others like him.

Long-term 10

Long-term Fixed Costs Short-term Technology 10

Harvard Business Review

NOVEMBER 18, 2013

For instance, larger scale has enabled many hospital systems to lower their per-patient operating costs significantly. However, reform and other market changes are altering the scale equation for hospital systems, so some of the traditional advantages that larger scale has traditionally brought them may no longer apply.

Health Care 8

Health Care System Cost Price 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. to 2.4%.

Health Care 8

Health Care Insurance Price Cost 8

Ask Atma

MAY 5, 2012

What about doing market research?” process, some market research can still be done during the idea development stage. It is now possible to shift a large part of the market research into the product development phase. First, you would do market research to gain some insight into a potential market or an underserved market.

Business Model 93

Business Model Ries Agility Entrepreneur 93

Harvard Business Review

OCTOBER 5, 2017

Across industries and across countries, a small number of “superstar” firms are pulling away from the competition. He finds that the rise in industry concentration – the share of revenue captured by the top firms in a sector – is largely explained by the adoption of IT. But why are these companies doing so well?

Document 8

Document Industry Software Fixed Costs 8

Harvard Business Review

MAY 19, 2015

With 3D printing, however, industrial conglomerates are about to get a new lease on life. That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product. 3D printing offers even more advantages to these groups.

Engineering 8

Engineering Learning Curve Fixed Costs Competitive Advantage 8

Harvard Business Review

MAY 8, 2012

The telecom industry has changed, and the industry dynamics will continue to shift under the pressure from social media and the power of the consumer. Skype , for example, competes with fixed-line carriers by offering free mobile Skype calls. Google has its own contender in the market, Google Voice. In the U.S.,

Outsourcing 10

Outsourcing Wireless Telecommunications Core Competence 10

Harvard Business Review

OCTOBER 29, 2015

Size is perhaps the most neglected marketing tool. 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. The New Tools of Marketing. Insight Center. drink at $4.75.

Fixed Costs 8

Fixed Costs Price Constraint Cost 8

The Horizons Tracker

MARCH 23, 2023

.” The Matthew Effect Indeed, far from technology being found to disrupt incumbent operators, the data suggests that investments in digital technology are largely ensuring that dominant incumbents can entrench their strong market position and fight off any upstarts. What’s more, the share occupied by the top 0.1%

Creativity 124

Creativity Innovation Trends Information Technology 124

Harvard Business Review

OCTOBER 7, 2015

market has witnessed a substantial rise of activist investors. is a top performing S&P 500 listed company whose two-year total return outperformed the market by over 60%. Especially within volatile sectors, such as Industrials and Materials, this can be counterproductive. Example: Acme Industries and Widget Co.

How To 8

How To Due Diligence Strategy Proposal 8

Harvard Business Review

JULY 20, 2011

A succession of CEOs prior to Rick Wagoner (who fought heroically to overcome the dreadful hand he was dealt) allowed all manner of legacy costs to build up (retiree health, Jobs Bank, etc.) and those largely fixed costs were more painful and debilitating if GM shrank in the U.S. market: small and mid-car. And in the U.S.

Company 12

Company Franchising Fixed Costs Banking 12

Harvard Business Review

AUGUST 31, 2018

has slowed , and that in most industries the biggest firms have higher market share than they did a decade ago. 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.

Technology 9

Technology Agility Fixed Costs Software 9

Harvard Business Review

SEPTEMBER 18, 2013

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.

McCallum 9

McCallum Consultative Disruptive Innovation Real Estate 9

Harvard Business Review

MAY 9, 2013

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. Advertising Innovation Marketing'

Advertising 9

Advertising Brand Innovation Creativity 9

Harvard Business Review

NOVEMBER 16, 2017

While some large mergers have been scuttled in recent years, this one is different, principally because the parties occupy different rungs in the media industry supply chain. That’s certainly true in media industries, which are driven by broadband, mobile devices, and new video platforms preferred by younger consumers.

Stephenson 9

Stephenson Guidelines Supply Chain Analysis 9