Remove Fixed Costs Remove Leadership Remove Marketing Remove Quality
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Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

Grow while keeping fixed costs constant. This means eradicating the quick fixes that “keep people stubbornly focused on today at tomorrow’s expense.”. The quality of thought in a team or organization matters. Work, too, on the quality of your own thinking. Invest in the future, but not excessively.

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When Cost-Plus Pricing Is a Good Idea

Harvard Business Review

A second important deficiency arises from the fallacy that a cost-plus price is guaranteed to cover costs. Cost-plus prices provide no guarantee of covering costs or earning a profit. If the major competitors in a market use cost-plus pricing, it stabilizes price levels.

Price 8
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Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

Private label (retail-branded merchandise) has been growing for years – since Sainsbury and Marks & Spencer invented it over 100 years ago – increasing in quality and forcing down brand premiums. It provides consumers with a viable, lower cost alternative to the manufacturer branded products. and spends it in international markets.

Retail 9
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Who Wins in the Gig Economy, and Who Loses

Harvard Business Review

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. The American Dream is transforming to prioritize experiences over material goods and quality of life over quantity of stuff.

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What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

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.

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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. Yet by 2004 its market share was down to 3%. ” It explains why firms that have anchored their strategies to content have ceded digital leadership to those that have focused on connections. Bigger marketing budgets may not pay off.

Media 9