Designing Businesses : How to Develop and Lead a High by G. Young

By G. Young

A realistic e-book which goals to help engineers, and different technical pros, who locate themselves with the chance to run their very own company as marketers

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Extra resources for Designing Businesses : How to Develop and Lead a High Technology Company

Sample text

Generally, characteristics associated with good industry profitability are as follows. Contained rivalry within the industry This can occur when firms know their place within an industry, where that industry is segmented into various areas with an acknowledged specialist in each segment and limited competition across segments. A large company can maintain a price umbrella for smaller firms, and higher cost firms can be reluctant to cut prices, thus leaving low cost firms in the industry with very good profitability characteristics.

Business objectives must be expressed in terms of market position rather than in terms of absolute size or profitability in a given period. Size or profitability indicators reflect conditions at any given moment, but businesses with lasting value reflect success largely in their market position, this itself based on the strength of the products and services offered. Profitability is then derived from this market position, and from good internal management of the business. Business is also about continuity.

Response needs to be as quick and accurate as that of competitors, and in other operations aspects of the business the company is always ranked against competition.

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