Harvard Business Review

OCTOBER 29, 2015

This makes financial sense in industries with high fixed costs and low variable costs: larger sizes enable the company to charge higher prices that, even if they are just slightly larger, absorb a higher portion of fixed costs, while reducing packaging cost per volume and attracting value-minded consumers.

Fixed Costs 14

Fixed Costs Variable Costs Marketing Sales 14

Harvard Business Review

OCTOBER 7, 2015

According to Schulte, Roth & Zabel’s Activist Investing 2015 Annual Review, a total of 344 companies worldwide were subjected to activist demands in 2014, up 18% from the 291 recorded in 2013. However, free cash flow per share remained impressive at both companies, and fixed cost ratios remained somewhat intact.

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12

Harvard Business Review

JANUARY 5, 2017

JC Penney spent no money on television advertising during the 2015 Super Bowl, yet its “mittens” campaign was one of the most watched. Once a “connected” product draws in users, those users effectively become the sales force. Fixed costs have always been central to the economics of media.

Media 15

Media Advertising Fixed Costs Marketing 15