What drives superior profits?

Is it higher prices, higher volume or lower costs?  Fascinating article from Deloitte reporting on a major study they have done into exceptionally profitable companies.  They found that most highly profitable companies achieved this by generating higher than average prices, but that a strategy of driving volume or of lowering costs could also be successful.   For each of these strategies they provide a detailed case study of how a firm achieved this – Abercrombie & Fitch, Wrigley, and Weis the grocery chain.  They conclude that “there is no single recipe for achieving sustained competitive success against rivals” – which is what makes OM and business strategy so interesting.

This entry was posted in Chap 14 Operations strategy, Sector: Manufacturing, Sector: Retail and tagged , , . Bookmark the permalink.

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