A service level agreement (SLA) is a contractual agreement between the service provider and customer that defines specific services as well as their quality and availability. Typical contents include response times, key performance indicators (KPIs), responsibilities and measures in the event of non-compliance. SLAs create transparency, set clear expectations and serve as a basis for measuring service quality.
Mergers & Acquisitions (M&A) stands for mergers and takeovers of companies. The term covers all processes in which companies are bought, sold or merged in whole or in part. The aim of M&A activities is usually growth, market access, synergy effects or strategic realignment. The M&A process requires careful planning, due diligence and negotiations in order to minimise economic and legal risks.
Key account management (KAM) refers to the strategic support and development of a company's most important customers - the so-called key customers. The aim of KAM is to build long-term business relationships, offer customised solutions and create added value together through close collaboration. Key account managers act as the central point of contact and coordinate internal processes in order to optimally fulfil the specific requirements of customers.
Intangible assets are intangible assets of a company that have no physical existence but nevertheless represent a significant economic value. These include brands, patents, copyrights, licences, software and trade secrets. They also include customer relationships and goodwill. Intangible assets are often difficult to value, but play a key role in differentiating a company in the market and building long-term competitive advantages.
Tangible assets are physically existing assets of a company that are tangible and have a measurable economic value. These include, for example, machinery, buildings, vehicles, land or inventories. Tangible assets differ from intangible assets such as brands, patents or software licences. They play a central role in accounting, investment decisions and often serve as collateral for loans.
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.
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.
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.
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.