Harvard Business Review

APRIL 6, 2016

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.

Assets 12

Assets Operations Insurance Telecommunications 12

Harvard Business Review

NOVEMBER 10, 2016

AirBnB, now used by 50,000 renters each night, is considered to be directly responsible for an estimated $450 million of lost hotel revenue each year. On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system. Or take medical appointments.

Hospitality 13

Hospitality Administration Transportation Fixed Costs 13

Harvard Business Review

OCTOBER 5, 2017

He finds that the rise in industry concentration – the share of revenue captured by the top firms in a sector – is largely explained by the adoption of IT. First, they argue, intangibles often involve considerable upfront investment, then are cheaper to scale. But why is IT leading to winner-take-all competition?

Software 9

Software Fixed Costs Scaling Revenue 9

Harvard Business Review

NOVEMBER 29, 2013

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

Revenue 9

Revenue Nonprofit Operations Hospitality 9

Zenefits

JULY 31, 2022

Managing inflating costs can be difficult for companies, particularly with high fixed costs like infrastructure or manufacturing. Survival in an inflating economy requires businesses to find ways to keep costs down while still meeting customer demands. Any of the above. Back to Vote.

Manager 52

Manager Onboarding Banking Process Improvement 52

Harvard Business Review

AUGUST 16, 2011

Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low. Because a business's cost structure determines which customers it finds profitable, keeping these fixed costs low preserves strategic options for the company when it is choosing which customers to target.

Fixed Costs 22

Fixed Costs Metrics Scaling Marketing 22

Chief Executive

JULY 25, 2022

And if we do that, we can’t help but grow revenues per fixed cost. It’s economies of scale at Vanguard and Amazon. And if we bring more customers to the site, then we can’t help but attract more third-party sellers. And if we do that, then we can’t help but expand the store and extend distribution.

Balance Sheet 98

Balance Sheet Assets Engineering Operations 98

Harvard Business Review

FEBRUARY 22, 2011

A virtuous cycle is baked into their strategy: use these resources to achieve scale in ways that help achieve even more scale. Greater scale bestows greater competitive advantage. As they pursue their quest for greater scale, they are poised to bring the scale dynamics of digital businesses to offline activities.

Advertising 16

Advertising Variable Costs Scaling Media 16

Harvard Business Review

MAY 21, 2015

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay.

Energy 15

Energy Transportation Real Estate Software 15

Harvard Business Review

JUNE 24, 2013

billion before it had even $20 million in revenues) or YouTube (which was sold 19 months after its founding to Google for close to $2 billion), or other companies whose hyper-growth attracted suitors before a viable business model emerged. How will you generate enough transactions to cover the fixed costs involved in running your business?

Fixed Costs 11

Fixed Costs Revenue Marketing Scaling 11

Harvard Business Review

OCTOBER 7, 2015

Activists look to see if opponents could be combined to form a more productive single entity, one that can capitalize on economies of scale and monopolize a given sector. In recent years, both companies exhibited compressed margins, flat revenue growth, and lagging returns. revenue composition, economic factors, etc.)

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12

AIHR

NOVEMBER 12, 2024

When to offer it: If your company has fluctuating workloads or seasonal needs or has to reduce fixed labor costs. Commission-based employment This arrangement bases a worker’s compensation primarily on the sales or revenue they generate. Salary format: Derived from revenue generated minus expenses.

Insurance 98

Insurance Staffing Compensation Benefits 98