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June 16, 2004

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Peter Davidson

So, Jennifer, what was your advice to your client? How did you help them in light of their price war?

David Foster

One thing that makes this issue even more difficult is the "growth at any cost" obsession that many companies have...this makes it difficult to walk away from marginally-profitable (or even outright unprofitable) business. Clayton Christensen's new book "The Innovator's Solution" has some useful correctives to this kind of thinking (review of the book at my blog).

A good understanding of your own costs is also important in deciding what business is worth having, and really good cost analysis systems are sadly lacking in many businesses.

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