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...

Does Machinima Have the Winning Model

Youtube giant Machinima is pushing the envelope on the broadcast television model. Traditionally, networks spend massive amounts of money developing shows and content to be mass disseminated over controlled networks.  Barriers to entry are high as well as the...

Fatal Error #38: Falling in Love with Your Inventory

I think I have bumped into one too many clients with the issue of over-investment of inventory lately, so I am pulling out an excerpt of my book The 51 Fatal Business Errors and How to Avoid Them. You may be saying to yourself, “I don’t have an inventory.”  Yes you...

Flipping in the Pandora Business Model

A few posts ago, we discussed the Pandora business model.  Pandora.com has been a huge success capturing musical market share and has a terrific business model in many ways.  However, there are some difficulties with the model, particularly, the direct relationship...

Delta Airlines Odd Business Model Move

In an odd move, Delta Air Lines Inc. (DAL.N) will buy a Pennsylvania oil refinery from ConocoPhillips for $150 million. In a throwback to the 1920s Ford Motor company vertical integration strategy, Delta says that the first ever purchase of a refinery by an airline...