Learn more about economics with this collection
Why happiness is the ultimate goal
The importance of creating value
How to create wealth in the modern era
The Consumer Is King
The key to profitability is to imagine how you are contributing to making consumers better off.
In our advanced economy, with two-thirds of all spending being business-to-business (B2B), your customer may not be the consumer. But the consumer is the user of the final product and therefore the one that determines its value. The consumer, therefore, determines also the value of all contributions in the supply chain, albeit indirectly.
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Staying Profitable Over Time
To stay profitable over time, look beyond your customer and consider your contribution to the value of the final product. Even if your customer does not recognize it, you should meet the opportunity and innovate to offer your customer an upper hand.
If you make your customers thrive, your ...
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Disruption Is Inevitable
Looking at the example of Uber, which upended the taxi services a few years ago, your business is not safe even if you are already making nice profits and the future looks bright.
After all, even protected monopolies eventually get disrupted. What you need is to make sure you can stay prof...
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Profitability Is To Meet The Future
The key to profitability is to recognize what businesses are and do from the perspective of the whole economy. Businesses formulate strategies to position themselves with respect to each other and thereby earn profits. So the economic context matters, because it is within the economy that you run...
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Staying Afloat And Thriving
Profits are rewards for a job well-done. But to maintain profitability, your sight must be set to facilitate future value. After all, the line of production that you’re considering today will not be instantaneously available to your customers.
The value they get from the goods and service...
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1. Consumer Sovereignty
Not only is the customer king, but all production aims to ultimately satisfy consumers in some sense by providing them with value. This value is entirely up to the consumer. Entrepreneurs can only provide the means, typically a good or a service...
Consumer Spending Is The Main Driver Of The Economy
Consumer spending dominates the economy. Because it is such a large share of GDP, it drives corporate profits — and corporate profits, as we saw, drive employment. The stock market is a predictive indicator, moving up and down with consumer spending.
Consumer spending forecasts, then, can...
The Consumer is More Than a Participant
Through personalized data gathering companies hope to connect with their audience in more relevant ways. Due to the changes in consumer behavior, brands are shifting towards a conversation-based approach.
However, with the introduction of AI-based technologies comes the eagerness t...
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