Avoiding Rocks and Hard Places: Your Gross Margin Model--Developing a Gross Margin Model that Will Generate Competitive Advantage
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- Synopsis
- There are five elements of any company's business model that determine whether a business or organization can survive and prosper: revenue, gross margin, operating expenses, working capital, and investment. If revenue is the lifeblood of a company, gross margin is the safety and security that is equally important. Generating adequate gross margins from your revenue ensures that there's money available to pay the rest of your company's costs. If extra money is generated, it can be used to grow the business or to take that trip to Morocco you've been meaning to take. But if your gross margin is insufficient to cover your other costs, profitability will be elusive. In this chapter, the authors will help you devise a gross margin model that will give your company some financial breathing room by examining the stories of three inspiring companies: eBay, Toyota, and Patagonia. This chapter was originally published as Chapter 4 of "Getting to Plan B: Breaking Through to a Better Business Model."
- Copyright:
- 2009
Book Details
- Book Quality:
- Publisher Quality
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 08/03/16
- Copyrighted By:
- HBS Press
- Adult content:
- No
- Language:
- English
- Has Image Descriptions:
- No
- Categories:
- Nonfiction, Business and Finance
- Submitted By:
- Bookshare Staff
- Usage Restrictions:
- This is a copyrighted book.