Remove Assets Remove Fixed Costs Remove Media
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Solving the Internet's Congestion Problem

Harvard Business Review

It's the growing fidelity demands of today's internet population, as they transition from text, image, and standard-definition media-sharing, to high-definition (and even 4K) file transfer. Today, billions of people are increasingly using the same pipes to deliver billions of HD media files. We're facing a congestion crisis.

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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. Model 2: Asset capacity pooling.

Assets 12
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Solving the Internet's Congestion Problem

Harvard Business Review

It's the growing fidelity demands of today's internet population, as they transition from text, image, and standard-definition media-sharing, to high-definition (and even 4K) file transfer. Today, billions of people are increasingly using the same pipes to deliver billions of HD media files. We're facing a congestion crisis.

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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. As the bullwhip roars and media reports increase the fear in the marketplace, companies can expect consumers to become more frugal.

Sales 15
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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

General Motor’s announcement that it plans to idle five North American factories and cut 14,000 jobs has sparked much discussion in the media and outrage in Washington. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. Then there is the question of how to reallocate assets.

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What the Nonprofit Sector Needs to Reach Its Full Potential

Harvard Business Review

What if the sector had one coordinated force doing its advocacy, its media, its communications, its legal defense, and its grassroots organizing, and this was all connected to a merged effort to take the best practices of the evaluators and combine them into one powerful new information engine for the public? ” people will say.

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Why Mergers Like the At&T-Time Warner Deal Should Go Through

Harvard Business Review

While some large mergers have been scuttled in recent years, this one is different, principally because the parties occupy different rungs in the media industry supply chain. That’s certainly true in media industries, which are driven by broadband, mobile devices, and new video platforms preferred by younger consumers.