Tags
Business, Fixed cost, Internal rate of return, Net present value, Overhead (business), Payback period, positioning, Rate of return, Small Business, strategy
There are several strategic ways of making money. If you want to occupy the premium space, your margin is typically very high and volume is low. If you want to be a cost-leader, then your margin is typically low and volume has to be high. The value provider sits somewhere in between. For your industries, it is not difficult for you to map out your competition landscape by putting them into the 2 or 3 boxes I have mentioned above. The clearer where you want your company’s products and services to be, the better. The worse case is when you are not clear – and you muddle around.