Remove Fixed Assets Remove Price Remove Working Capital
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Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

These choices historically conferred advantage – first-mover, scale – but asset-based scale advantages have diminished in recent years, thanks to technology, cheap information, and outsourcing. Assets are important, but they are, increasingly, table stakes in most competitive industries; everyone in the game has them.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). During the last financial crisis, for example, they saw their share prices take greater hits than their short-term counterparts.