article thumbnail

Business Model Generation : Blog | Executive Coaching | CO2 Partners

CO2

B usiness Model Generation caught my eye in a book store in December – It is rare I find myself in book stores anymore given how many books are sent to me as a blogger and my preference in reading on Kindle or IPad. I could see there was something new about this book and how the authors thought about business models.

article thumbnail

Five Rules for Innovating in a Shaky Economy

Harvard Business Review

Management has made promises to senior executives about what a project will achieve, and fixed costs have built up because they looked prudent in comparison to planned revenues. The company created a fixed number of these passes, limiting the amount of risk it took in case people got a bit too enthusiastic with their travel.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Why Spotify Will Kill iTunes

Harvard Business Review

Though you might not even be aware of the competitor that is attacking the music titan of the past decade, that iTunes business model is about to be blown up completely and swiftly. It was in your home, had no shelf space limiting its inventory, and could beat Tower on price because of its lower fixed costs.

article thumbnail

The Company Outsmarting Big Pharma in Africa

Harvard Business Review

That may be true, but then the firms that do carry out the R&D are also dominant in their developed domestic markets, where their margins can absorb the fixed costs of R&D and there's nothing to stop them from competing on a cost basis in Africa, particularly given the low production costs of most drugs.

Company 15
article thumbnail

Solving the Internet's Congestion Problem

Harvard Business Review

Today, the primary business model for the consumer internet is all-you-can-eat usage. However, the model separates subscriber revenue from the cost of the network. Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset.

article thumbnail

Revenge of the HourlyNerds

Harvard Business Review

HourlyNerd profits by taking a cut of the fees from both the client business and the student providing the service. HourlyNerd represents one of the newest business models in consulting, the facilitated network business , which is structured to enable the exchange of services between clients and freelance consultants.

article thumbnail

Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.