E-commerce is nothing new in today’s retail environment, but it still remains a small proportion of sales for many businesses. The picture for certain restaurants is slightly different. Online ordering is increasingly becoming the dominant sales channel for pizzas while technology is also playing a bigger part in both ordering and payment for other operators.
You walk on the floor all day long and you may think that there isn’t any difference where you buy it. These specialty-flooring companies want you to think otherwise about the tiles and carpets that they sell.
The cyclicality of the airline industry and the high break-even costs per flight suggest that airline carriers will bend over backwards to earn more money from every passenger.
It's better late than never. Beverage companies are now taking the threat of falling soda sales seriously and have adopted a variety of measures in response.
Most job seekers find more suitable openings on niche job sites than general ones. The same logic applies to specialized staffing firms, which have found more success than their generalist peers.
Many investors have missed profitable investment opportunities simply because they called the death of an industry way too early. Kiosk DVD rental could be one of them, as it is well-positioned to gain market share from other forms of physical distribution.
The experiences learned as a late mover clearly outweigh any advantages as an early mover. This is especially true in the U.S. online grocery market, where barriers to entry and market penetration rates are low.
Many investors invest in companies with little pricing power and find that their companies’ share prices fall in tandem with profit margins. They need to understand that pricing power is a function of customer price-sensitivity, which is in turn influenced by the price of the product and how much it is as a part the customer’s budget.
If you are a soda drinker unable to decide between healthier homemade sodas and your favorite off-the-shelf Coke, the upcoming Keurig Cold at-home beverage maker might be your savior. While this is positive for consumers, the impact for sellers of soda-makers and sodas isn't straightforward.
David only beat Goliath because he was able to use his size to his advantage. Similarly, small town retailer Stage Stores has achieved success by focusing on smaller markets, smaller store formats, and feeding off traffic from larger retailers.
In the aftermath of the global financial crisis, consumers are increasingly cost conscious. But that doesn’t mean that they will favor private label over branded products in every category. Chocolate producer Hershey is one notable exception.
It’s worth taking notes from Darwin’s theory of evolution, when one is considering the fate of a movie industry disrupted by technology and changes in consumer preferences. As long as cinema operators evolve and adapt to changes, they have a good chance of survival.
Investors often look at a company’s revenue and market capitalization as indicators of its size and profitability. This view is misguided, as it is a company’s relative market share in its target market that determines success.
Both auto and plane makers are putting a greater emphasis on lighter and more comfortable seats. This is because these features help to differentiate their products in the eyes of customers with respect to innovation and cost efficiency.
Free weight loss apps are not much different from treadmills that collect dust at home. Weight management companies should remain in business as long as people lack motivation and commitment to lose weight on their own.
Companies should emphasize profitability rather than size and global reach. Expansion into the fastest-growing markets is not necessarily a good decision, considering the dismal fortunes of many Western home-appliance makers in China.
Investors tend to equate absolute size and well-known brands with company profitability. This isn’t necessarily true, as seen in the financial numbers of the leading office-furniture manufacturers.
The story of David and Goliath has important lessons for investors, as it shows how size (or the lack thereof) can be used intelligently as a competitive advantage against bigger-sized rivals. One such David in the organic food retail space is The Fresh Market.
A good company in a bad industry is almost always a better investment than an inferior company in an attractive business. Sysco has successfully met the challenges of the food-distribution industry because of its superior business strategies.
With rising input costs such as labor and commodities, investors are best advised to invest in companies with strong pricing power. Examples include global suppliers of flavors and fragrances.