Product profitability: Causes and effects

Toward a theory of competencies for the management of product complexity: Six case studies

“…On the other hand, complexity can also increase sales through greater product differentiation (Kekre and Srinivasan, 1990;Lancaster, 1979;Quelch and Kenny, 1994). At some point, increased cost associated with added complexity will dominate the revenue benefit (Lancaster, 1979;Moorthy, 1984;Quelch et al, 1994;Robertson and Ulrich, 1998;Sievanen et al, 2004;Thompson et al, 2005). The combination of diminishing sales returns and increasing costs due to complexity create the potential for an optimal level of complexity in a product portfolio.…”

Introducing the All Seeing Eye of Business: a model for understanding the nature, impact and potential uses of waste

“…The Kanthal effect (or "whale curve") of Fig. 3 is frequently seen when cumulative profitability is plotted against products ranked from most profitable to least profitable (Kaplan and Atkinson, 1998;Kaplan and Cooper, 1998;Sievänen et al, 2004). Typically 20% of a company's products generate about 300% of the actual profits of a company; the remaining 80% of products either break even or make a loss, thus losing the remaining 200% of the company's profits.…”

Involving the process dimensions of time in case-based research

“…De Hildebrand e Grisi and Puga Ribeiro (2004), Palmer and Millier (2004), Roxenhall and Ghauri (2004), Sievänen, Suomala, and Paranko (2004), Ford and Redwood (2005) Beverland (2005b), Perks (2005), Harrison and Håkansson (2006), Rinallo and Golfetto (2006) Critical events Liu et al (2004), Kamp (2005) In the analyzed articles, time is always present, but often in an implicit way. Conceptions of time are therefore limited in scope, but together all case studies support the multifaceted character of time.…”