After review of company internal strength, it is time to look outside. There are several ways a company can grow its size. The first one is 'chaining' like Wal-Mart or In-n-Out burger. The second way is 'franching', the difference between chaining and franching is the owership, ownership motivates franchisees to grow their business. McDonald is the leadership of franchise. The third way is 'horizontal merge', Dillard's is an example of this. Oracle merges Sun Micro system to grow its territory into server business too. For most of smaller business, using Internet and emergying information technology gives them the great opportunity to grow business.
Prodigy fell to hell with a burn of $1.2 billion on the venture. Prodigy was running great for the first years until AOL joining the competition. There are several minor different services between them which eventually let Prodigy down. 1. charged emails 2. no chatroom 3. out-dated user interface. All 3 factors pushed customers to AOL's side.
Vacuum tube business reached its peak at 1950s and keep fading. It is hard to believe a company named "Richardson Electric" not only survives but also makes margin profit at 35 to 40 percents. What is the secret? Richardson is the biggest supplier of vacuum tubes now and big customers like US goverment and GM still operate some old machines which need replacement of vacuum tubes. Once Richardson basically monopoly the market, it is so profitable and no competitors. They shows any kind of business could make good earning.
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