search query: @author Weigand, R. E. / total: 10
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| Author: | Weigand, R. E. |
| Title: | Buy in-follow on strategies for profit |
| Journal: | Sloan Management Review
1991 : SPRING, VOL. 32:3, p. 29-38 |
| Index terms: | PRODUCTIVITY STRATEGY PRODUCTS |
| Language: | eng |
| Abstract: | With a Buy In-Follow On strategy, a company sells a product or service (the Buy In) at a less than satisfactory profit or even at a loss, but subsequently sells a linked product or service (the Follow On) at a significant profit. Marketing, financial planning and forecasting tools are used to explain this strategy and its considerable forecasting and budgeting problems. Further, strategies for preventing others from hitchhiking are described. Several examples of Buy In-Follow On ventures are presented. Some methods of estimating profits are provided. Legal issues are considered. Some rules of competitive pricing and performance warranties are offered. The role of profit centers in managing this strategy is shown. |
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