Chapter 4 Terms

Cash cow

A business or product that generates a steady, reliable source of income with minimal investment or effort.

Creosote bush

A product or business that uses up resources (money, time, attention), crowds out new ideas or innovation, and may have been valuable once, but now holds the company back.

Disruptive technology

Innovations that significantly alter industries, displacing established technologies or products.

Fixed costs

Expenses that do not change with production volume, such as rent or salaries, and must be paid regardless of sales.

Key performance indicators (KPIs)

Specific metrics used to evaluate success or progress of an organization in achieving KEY objectives.

Long tail

Focusing on offering a large number of niche products rather than a few bestsellers to yield greater overall sales.

Marginal costs

The additional cost incurred to produce one more unit of a good or service, reflecting changes in production volume.

Cannibalism

In marketing, cannibalism refers to a situation where a new product takes sales away from an existing product within the same company, rather than attracting new customers.