Read – HBR OnPoint “Profitable Growth”

What business is your company really in? Most firms actually engage in 3 businesses:

  1. Attracting customers
  2. Developing products and/or services
  3. Managing operations infrastructure

Through integrated, these three businesses also conflict. In attracting customers, profitability depends on scope – extending relationships and generating enough revenue from them to cover your customer-acquisition investment. But speed to market – not scope – drives successful product innovation. And you need economies of scale to fund the high fixed costs of capital-intensive infrastructure.

Companies can’t optimize scope, speed, and scale simultaneously, so they make trade-offs.

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About Andre

Experience Business Developer & Alliance Partner Manager with Strong Technical Background Dealing with Complex Solutions
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