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Fatal Error #27: Do they graduate or quit

Fatal Error #27: Do they graduate or quit

You are going to hate me for this one because I am going to tell you that you should WANT your best people to leave you. No, I am not nuts. I am simply a pragmatist. Think about it. If you have a true superstar, that once every 10 year person… can you really afford to...

T-Mobile Messes with Samsung’s Business Model

T-Mobile Messes with Samsung’s Business Model

Deutsche Telekom’s T-Mobile USA made a bold move to remove smartphone subsidies. Carriers have long complained that handset subsidies benefit manufactures such as Apple and Samsung to the detriment of carriers. For instance, an iPhone 5 sells for $199 with the...

A Great Business Model Lesson from Gun Control

In business, change is not usually your friend. . You work hard to create and work your plan, and then competitive, economic, and sociological changes degrade it. . Clever entrepreneurs are capitalizing on the politically charged changes to the gun business. As eBay,...

The Girl Scouts’ Disappointing New Business Model

If you frequent the grocery store, you have probably noticed the variety of products labeled,   "Contains Real Girl Scout Cookies.” Everything from ice cream to Nestle Crunch Bars is now co-branded with Girl Scout cookies.  This mass distribution and leverage of the...

The Surprising SodaStream Business Model

It is estimated that 50% of Americans consume at least one soda per day, totaling about 8.5 billion gallons. SodaStream (NASDAQ: SODA) has taken an interesting approach to this market, dominated by Coke and Pepsi. Coke and Pepsi have a traditional sales and...

Can Best Buy’s 5-Point Plan Work?

Many pundits are forecasting the demise of big box retailers, including troubled Best Buy. Sales are down. The stock has been pummeled. Now the company has brought in a new CEO with a new 5-step plan to turn things around. Let's take a closer look at his strategy. 1....

Three Business Models in Danger

Sometimes a great business model hits a snag. These pitfalls can damage or even destroy a once good business model. In this article, I will discuss three business models with significant potential pitfalls. Energy drink business model As more and more incidents of...

Does Cost Cutting Create Competitive Advantage?

Many Fortune 500 companies have shown us that you can make more profit with fewer sales. Sealy Mattress’ second quarter 2012 sales down 2.9%, profits up 1.5%. MillerCoors’ domestic first quarter sales to retailers was down 1.6 percent but net income rose 16.6 percent....

Penney’s Business Model Experiment Goes Splat

  J.C. Penney just reported a bigger-than-expected loss and rapidly declining sales, as customers vote with their wallets and revolt against the new pricing plan that gets rid of hundreds of sales in favor of every day lower prices. Only six months ago, Penney’s...

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