Harvard Business Review

MARCH 22, 2013

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. Like any fixed-cost asset, such as the Interstate highway system in the U.S., it is cheap to operate and expensive to upgrade.

Fixed Costs 17

Fixed Costs Revenue Assets Scaling 17

Harvard Business Review

SEPTEMBER 9, 2015

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.

Sales 15

Sales Sales Operations Fixed Costs 15

Harvard Business Review

MARCH 22, 2013

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. Like any fixed-cost asset, such as the Interstate highway system in the U.S., it is cheap to operate and expensive to upgrade.

Fixed Costs 10

Fixed Costs Revenue Assets Scaling 10

Harvard Business Review

NOVEMBER 10, 2016

As Marshall Van Alstyne, Geoffrey Parker, and Sangeet Choudary articulated recently in HBR , “With a platform, the critical asset is the community and the resources of its members.” On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system.

Hospitality 12

Hospitality Administration Transportation Fixed Costs 12

Harvard Business Review

NOVEMBER 30, 2018

government. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral.

Fixed Costs 14

Fixed Costs Assets Cash Flow Variable Costs 14

Harvard Business Review

NOVEMBER 16, 2017

Last Wednesday, government sources claimed the Department of Justice’s antitrust division was demanding that AT&T sell Turner Broadcasting channels, including CNN, as a condition for approving the deal — and that AT&T had refused, setting up a possible court challenge. Britta Knappmann/EyeEm/Getty Images.

Government 10

Government Media Fixed Costs Marketing 10