Monthly Archives: April 2013

Slower growth, higher margins as Amazon.com plays middleman

Posted on April 28, 2013 by aviyer2010

An article in the Wall Street Journal (April 26,2013) describes Amazon.com’s growth as lowing, from 34% last year to 22% for the same quarter this year, while margins increased by 33% to 26.6%. The author claims the slowdown is the … Continue reading →

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Steel manufacturer’s competitive response to falling steel prices

Posted on April 27, 2013 by aviyer2010

An article in the Wall Street Journal (April 27, 2013) describes the decline in steel prices and the response by steel manufacturers. ThyssenKrupp is claimed to offer to pay freight costs to maintain market share. Further price discounts of 5 … Continue reading →

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P&G’s claim of “win-win” by delaying supplier payments but enabling borrowing at lower rates

Posted on April 27, 2013 by aviyer2010

An article in the Wall Street Journal (April 16.2013) describes a plan by Proctor & Gamble to delay supplier payments beyond 60 days as against the current 45 days, to free up over $2 billion in cash. Suppliers would be … Continue reading →

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Should patent length vary by industry to spur innovation ?

Posted on April 27, 2013 by aviyer2010

An article in the Wall Street Journal (April 24,2013) describes a proposal to vary patent protection length by industry, rather than the US standard of 17 years. It reports the chairman of Amazon, Jeff Bezos, as suggesting 3 years as … Continue reading →

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The competitive retail supply chain impact of online US sales tax collection requirements

Posted on April 27, 2013 by aviyer2010

An article in the Wall Street Journal (April 22,2013) describes the proposed impact of a Senate bill requiring online retailers to collect sales taxes based on buyer location. The goal is to level the playing field for brick and mortar … Continue reading →

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Samsung vs Apple supply chains for successful cell phones

Posted on April 23, 2013 by aviyer2010

An article in Bloombergbusinessweek (April 1,2013) describes Apple’s supply chain strategy which outsources all hardware but controls software access and apps to Samsung’s strategy that produces all hardware but uses the Android open source software. Does producing components for competitors … Continue reading →

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Are readmission rates a good measure of hospital quality?

Posted on April 23, 2013 by aviyer2010

An article in the New York Times (March 30, 2013) describes the impact of Medicare penalties based on patient admission rates, claiming that such schemes have resulted in decreased rates, from 19% to 17.8% in one year. But others claim … Continue reading →

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Estimating the impact of new US sulfur limits on fuel on gasoline costs

Posted on April 23, 2013 by aviyer2010

An article in the Wall Street Journal (March 29,2013) describes the differing estimates of the proposed plans to limit sulfur in fuel to under 10 parts per million (ppm) from the current 30 ppm. Petroleum executives claim a price impact … Continue reading →

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Lack of coordination across governmental units and pollution in China

Posted on April 23, 2013 by aviyer2010

An article in the New York Times (March 24,2013) describes pollution levels in Beijing and blames the lack of coordination between the ministries managing the environment and state owned enterprises managing the oil and power. Thus, while the pollution control … Continue reading →

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Why did J.C.Penney’s stable pricing not work ?

Posted on April 23, 2013 by aviyer2010

An article in the New York Times (April 14,2013) describes the consumer experience at retailers such as J.C.Penney and the need to enjoy the sale and anchor the value of product sold. J.C.Penney’s attempt to reduce sale items, reduce average … Continue reading →

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