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Posted On: 06/21/2023 2:52:19 PM
Post# of 32974
Let's divide the business into 2 parts. One that has minimal growth potential (CRM), and the other has extremely high growth potential (Market Live).
CRM = low growth potential (slow escalation of revenue), major portion of total people employed (high overhead), already established market for this product. Let's keep selling lemonade forever mentality.
Live Shopping (Market Live) = extremely high growth potential (very fast escalation of revenue), minor portion of total people employed (low overhead), new market for this product that is not well established. Let's sell lemonade today, and Lamborghinis tomorrow mentality.
Okay, now we know which part of the business is valued the most (not same as most income). Why else would VERB divest?
"What Is Divestment?
Divestment is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Also known as divestiture, divestment is effectively the opposite of an investment and is usually done when that subsidiary asset or division is not performing up to expectations."
Divestment: Definition, Meaning, Purpose, Types, and Reasons
Btw, Marcy McKenna is probably excited because CRM doesn't help her grow one bit. What does VERB focusing more energy on Market Live potentially do for her? $$$$$
CRM = low growth potential (slow escalation of revenue), major portion of total people employed (high overhead), already established market for this product. Let's keep selling lemonade forever mentality.
Live Shopping (Market Live) = extremely high growth potential (very fast escalation of revenue), minor portion of total people employed (low overhead), new market for this product that is not well established. Let's sell lemonade today, and Lamborghinis tomorrow mentality.
Okay, now we know which part of the business is valued the most (not same as most income). Why else would VERB divest?
"What Is Divestment?
Divestment is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Also known as divestiture, divestment is effectively the opposite of an investment and is usually done when that subsidiary asset or division is not performing up to expectations."
Divestment: Definition, Meaning, Purpose, Types, and Reasons
Btw, Marcy McKenna is probably excited because CRM doesn't help her grow one bit. What does VERB focusing more energy on Market Live potentially do for her? $$$$$
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