Very nice article Daly! Really an excellent read… Looks like Nic+Zoe can learn from Zara’s fast-fashion business model in trying to optimize their design-produce-sell cycle (maybe you should go in to help)! Also its good to know that sales staff draw insights from comments we make during fittings. Better watch out what I say next time or we will all be dressed like James Bond! 😛
Hey Steven! Nice article! Based on what you wrote it seems HBS’ COGS (mainly faculty salaries) is quite high at 47% of its Revenues! On a more serious note, HBS is indeed one of the best-designed organizations in the world. You mention that tuition revenues is limited by class size, however tuition fees have been increasing substantially over the years which has also benefited HBS allure. The way I see it, higher fees and limited class size, leads to higher selectivity of the institution and in-turn higher prestige, and the cycle you describe begins… 🙂
MP (Michael Prince I assume?!) thanks for the nice read! Its very interesting to know SolarCity started off as essentially a marketer (and installer) of home solar-power solutions before deciding to backward-integrate and buy Zep Solar and Silevo to manufacture the solar panels in-house. It looks like they benefit from linking their knowledge of the market and customer needs to manufacturing in order to drive new product development.