Remove Advertising Remove Cash Flow Remove Productivity
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Economies of Scope - Tom Spencer consulting blog

Tom Spencer

Economies of scope exist where a firm can produce two products at a lower per unit cost than would be possible if it produced only the one. If properly understood, economies of scope could be used by SMEs to drive profit growth and reduce the risk associated with product failure. Importance. burgers, fries, sundaes and salads).

Cash Flow 117
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What MoviePass Can Teach Us About the Future of Subscription Businesses

Harvard Business

Since I last wrote about the company , theater operator AMC entered the subscription market, to early success , and MoviePass took out and paid back a $6 million emergency loan and flip-flopped both its pricing and its product. Its grand vision was to accumulate millions of consumers so that it could monetize them through advertising.

Cash Flow 127
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What We Lose When Giant Investment Funds Run All Our Companies

Harvard Business

One giant mutual fund, which spends $135 million on advertising how thoroughly it works for clients, has just one employee overseeing the voting and stewardship of 10,000 companies. They mean that I can have the rights to the cash flows from a company’s shares without owning the share itself. And that is not the end of it.

Company 70
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Fool Me Once Or Fool Me All The Time

Martinka Consulting

Zweig writes that any form of modified profit isn’t cash flow. So let’s look at the above in the context of other areas, starting with advertising. A perfect example is car dealers who advertise free oil changes for life. For more, just Google the terms Warren Buffet and Ebitda. Well, if it sounds too good to be true….

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

The company’s first revenues indicate the acceptance of its product or services by customers. However, the real revenue-providing customers are companies that pay for advertisements (they may be called “revenue units”). Many of these metrics are disclosed in Facebook’s financial statements.

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Subscription Business Models Are Great for Some Businesses and Terrible for Others

Harvard Business

For product development, the offering needs to evolve constantly to meet members’ needs – changes only every year or two won’t cut it. Love their members more than their products. It’s the members’ mission that should be your guiding star, not your products, whether you offer DVDs or workouts.

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AT&T, Time Warner, and What Makes Vertical Mergers Succeed

Harvard Business

AT&T is merely paying — actually, overpaying — for the cash flows from those assets up front. They are market-share leaders in advertising, hardware, e-commerce, and social networking. The cheaper a complement is, the more value it adds to the core product. There’s no net benefit.