Variabilization
Fixed costs turn growth into profit. But they can also turn declines into big losses. Variabilization—transforming your fixed costs into variable ones—offers an attractive alternative. A variabilized cost structure is responsive, adapting rapidly to both increases and decreases in demand. Many companies are doing more than variabilize their own costs, they are developing and offering “variabilization solutions” to their customers. This trend suggests that the … [ Read more ]
Content: Article | Author: Nicolas Kachaner | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management, Operations, Strategy
Does Your Strategy Need Stretching? Adapting Your Strategy-Development Approach to Fit Today’s Rapidly Changing Competitive Environment
This BCG Report summarizes our recent research into how leading companies are adapting their strategy development processes to today’s increasingly unpredictable competitive environment. Based on 100 executive interviews, we found that they are stretching their time horizons to give the short, medium, and long term each its due. Stretching their thinking with new techniques to boost creativity and insight. And stretching their engagement models to … [ Read more ]
Content: Article | Authors: Camille Saussois, Michael S. Deimler, Nicolas Kachaner | Source: Boston Consulting Group (BCG) | Subject: Strategy