Mansueto Ventures

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Whitepaper: Infrastructure: The Chicken Or The Egg?

by Mansueto VenturesJan 01, 2008

Developing capacity costs money, that one does not want to spend unless needed. A reputation can be irreparably harmed by poor service occured from inadequate infrastructure. Fully integrating decisions to shape supply through infrastructure adjustments and to shape demand through marketing can manage, but not eliminate, risk. Focusing on financial risks and opportunity has to be a formal part of the process. In almost every case, there are options. Cash flow and near-term profitability considerations can drive decisions about lease versus buy, outsourcing versus hiring, lines of credit, payment terms with new customers or suppliers and limited versus broad rollouts.