by innoWerft | Apr 16, 2025 | Glossary entry
Market entry barriers are factors that make it difficult or impossible for new companies to enter an existing market. These include high investment costs, legal regulations, strong brand loyalty, patents, economies of scale or exclusive distribution channels. Such barriers protect established companies from competition and secure long-term market shares. They are a central element of strategic market analyses and are often used to assess the attractiveness of a market.
by innoWerft | Apr 16, 2025 | Glossary entry
The net profit margin shows how much of turnover remains in the company as profit after deducting all costs - including taxes, interest and operating expenses. It is one of the most important key figures for assessing the financial health and efficiency of a company. A high net profit margin indicates a strong business model, while a low margin indicates potential for optimising cost structures.
by innoWerft | Apr 16, 2025 | Glossary entry
Cost leadership is a competitive strategy in which a company endeavours to be the most cost-effective provider in its industry. Through optimised processes, economies of scale and favourable procurement, products or services can be offered at lower prices - without losing profitability. The aim is to gain market share or better survive price wars. The strategy became particularly well known through Michael Porter's competition models.
by innoWerft | Apr 16, 2025 | Glossary entry
The tipping point describes the critical moment at which a small change has a major impact and a development is suddenly massively accelerated. In business and marketing, it describes the point at which a trend, product or behaviour enters the mass market. The term was popularised by Malcolm Gladwell's book The Tipping Point. Once the tipping point has been passed, it is often almost impossible to return to the previous state.
by innoWerft | Apr 16, 2025 | Glossary entry
Scalability describes the ability of a business model, technology or process to grow efficiently and without loss of quality as demand increases. A scalable company can increase turnover without increasing costs to the same extent. Digital products such as SaaS solutions in particular are considered highly scalable, as they can be delivered to many users at the same time with minimal additional effort. Scalability is a key factor for rapid, sustainable growth.
