Remove Development Remove Efficiency Remove Fixed Costs Remove Marketing
article thumbnail

Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

He developed three principles of short- and long -term performance that forced them to consider the long- and short-term implication in every decision they made: 1. Grow while keeping fixed costs constant. Scrub accounting and business practices down to what is real. Invest in the future, but not excessively.

article thumbnail

How Do I Start A Small Business?

Strategy Driven

Apart from conducting detailed market research, finding out fair clientele, performing surveys, retaining target groups, exploring SEO, and researching public data, which are obviously important factors, one must also remain very adaptable to changing situations. What will be the market where you want to get into?

Insiders

Sign Up for our Newsletter

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

article thumbnail

The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

But how does the presence of climate skeptics affect the market for climate-related innovation? A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. and in developing nations.

article thumbnail

Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

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
article thumbnail

Will Personalized Medicine Mean Higher Costs for Consumers?

Harvard Business Review

Consequently, if we want new medical innovations to be financially viable for the patients who need it most, health insurance markets need to be regulated to eliminate the perverse financial incentives that limit patients’ coverage. Insurance markets are failing to deliver. First, a little background. Problems may get worse.

Cost 8
article thumbnail

China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

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. It reached a peak on June 12 and then proceeded to lose over 40% of its value by the end of August despite efforts by the Chinese government to prop up the market.

article thumbnail

Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

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.