Profit Maximization

Business Perspective, Vol. 9, pp. 41-49, Jan-June 2007

15 Pages Posted: 6 Oct 2009 Last revised: 21 Oct 2009

See all articles by Ajoy Kumar Dey

Ajoy Kumar Dey

Birla Institute of Management Technology

Date Written: October 4, 2009

Abstract

To stay competitive by creating higher value for consumers firms are in constant search for strategies and tactics that will maximize profit. Profits can be maximized by increasing per unit revenue, decreasing unit cost or a mix of both. This study has identified ten different approaches: Innovation, Brand Image, Customization – Mass customization, Customer collaboration, Long tail effect, Operational excellence, Outsourcing, Value engineering, Moving away from unprofitable customers and Reducing quality. Out of these approaches a manager should select the one that fits the situation best. Maximizing profit by reducing quality should be avoided as it threatens long term survival.

Keywords: innovation, customization, outsourcing, operational excellence, brand image

Suggested Citation

Dey, Ajoy Kumar, Profit Maximization (October 4, 2009). Business Perspective, Vol. 9, pp. 41-49, Jan-June 2007, Available at SSRN: https://ssrn.com/abstract=1482609

Ajoy Kumar Dey (Contact Author)

Birla Institute of Management Technology ( email )

Plot No. 5
Knowledge Park II
Greader Noida, CA Uttar Pradesh 201306
India

HOME PAGE: http://www.bimtech.ac.in

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