Profit pool

Making money is the most critical reason to be in business, yet this obvious statement is not so obvious in industries where you can spend all of your time and energy developing, nurturing and growing a business to have someone else reap all the profits of your hard work at the end of the day. In many industries, companies struggle to clearly understand where the profit lies and more importantly where the profit pool is migrating. Why is this so hard? One reason is that the revenue growth is an indication but not always the best predictor of profit pools.

(Full article only available in Korean)