HOW DO YOU BUILD LONG TERM VALUE?
Short term profit improvement is almost always possible as a result of cost reduction and a refocus of the business on fewer segments, where your firm has a clear competitive advantage. It may also be possible to push through some tactical price increases, particularly if the product or service can be improved. But the sources of long term profit improvement are generally different. Paradoxically, because they are long term, they need to be worked on now, immediately after you have worked out how to raise short term profits.
Long term profit improvement almost always rests on one or more of the following five sets of actions:
- 1actions to increase market share in existing segments
- 2actions to ârecompeteâ, ...
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