Tag Archives: Margins

Will consumers pay a premium for ethical transparent supply chains ?

Posted on August 26, 2013 by aviyer2010

An article in CNN (http://www.cnn.com/2013/08/26/living/aj-zady-ethical-fashion/index.html?hpt=hp_c3) describes two companies, Small Trades and Zady.com, who focus on providing all details of their supply chain – from the factory location to the employee sewing the apparel. The hope is that fashion conscious consumers … Continue reading →

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Can low shale gas prices attract new steel capacity to the US ?

Posted on June 19, 2013 by aviyer2010

An article in the Financial Times (June 19,2013) describes a new plant in Ohio built by Vallourec to produce steel tubes for the oil and gas industry. The company describes the low US gas prices, as well as the surging … Continue reading →

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Should Tesla be permitted to sell cars direct to consumer ?

Posted on June 18, 2013 by aviyer2010

An article in the Wall Street Journal (June 18, 2013) describes the electric car company Tesla’s attempt to sell direct to consumer from its own stores. The company can do so in states such as New York, New jersey, Massachusetts, … Continue reading →

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Decreasing production to increase profits at Ferrari

Posted on June 12, 2013 by aviyer2010

An article in the Financial Times (June 11, 2013) describes a plan to decrease production by Ferrari by 400 vehicles this year, down to 6,900 cars. The plan is to continue to maintain the exclusivity of the brand, add capacity … Continue reading →

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Vertical integration in the US global pharmacy supply chain and impact

Posted on May 22, 2013 by aviyer2010

An article in the Wall Street Journal (May 21, 2013) describes an alliance between Walgreens, Alliance Boots and AmerisourceBergen to consolidate their global purchasing of generic and branded pharmaceuticals and sell them through their US Walgreens retail stores and AllianceBoots … Continue reading →

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The economics of the $6.75 shirt in Bangladesh

Posted on May 18, 2013 by aviyer2010

In an article in the Wall Street Journal (May 16, 2013), a manufacturer, Rubana Haq, describes the producer margins in a $6.75 shirt he manufactures. He claims that it costs $4.75 to buy the cotton cloth and $1 for the … Continue reading →

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Does the hospital penalty for “excessive” re-admits improve service quality ?

Posted on May 6, 2013 by aviyer2010

An article in the Wall Street Journal (May 5, 2013) discusses the impact of the Affordable Care Act’s penalties for hospitals with excessive re-admits within 30 days, set at 1% in 2013 and going up to 3% in 2015. But … Continue reading →

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The competitive response to Apple’s decision to change its device connectivity

Posted on May 6, 2013 by aviyer2010

An article in the New York Times (May 6,2013) describes the accessory supplier’s response to Apple’s decision to change the connection for its devices. The new connection decision by Apple makes all existing accessories obsolete, with no advance notification provided … Continue reading →

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Shifting manufacturing from China to other parts of Asia as costs rise

Posted on May 6, 2013 by aviyer2010

An article in the Wall Street Journal (May 1,2013) describes decisions by Coach to reduce its manufacturing in China to 50% in 2015 (from 80% in 2011), by Crocs to reduce its footwear manufacturing to 65% this year from 80% … Continue reading →

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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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