.comment-link {margin-left:.6em;}

-Through my eyes-

13 January 2005

Brother's question worth blogging.

"IS CAPACITY AND YIELD MANAGEMENT IN COMBINATION WITH A CONSERVATIVE INVESTMENT STRATEGY THE ROAD TO SUSTAINED PROFITABILITY?"

Yes. Absolutely yes. Especially true for young budding markets. A business launches a gr8 marketing campaign, gets loads of response, quickly hires loads of staff to keep up with the demand. Soon the response drops, market saturates and you have idleworkers creating overhead.

The scenario does produce profits but only as a spike in the graphs. To achieve sustained profitability, some businesses need to conserve their investment strategy/marketing (like in my example) and charge variable pricing to various customers depending on the elasticity ofthe segment. This, from system's theory framework, can be aninteresting problem to solve.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home