Enhance Growth by Leveraging Other Companies' Assets

Traditional growth strategies require up-front investment in new assets in the hope of future profits. Result? Narrow margins--for a time, or forever. Here's a better way to spur growth: Leverage assets that other companies own.

For example, aggregate related firms' resources to create value-added service portfolios. Investment giant Charles Schwab does this by putting together specialized third-party resources (for example, Dow Jones news stories, Standard & Poor's company reports, and First Call earnings forecasts) to help customers make investment decisions. Through Schwab, customers can also access other companies' investment products or participating independent investment counselors. Schwab attracts more customers--at lower costs than if it owned the underlying assets.

By washingtonpost.com Editors  |  October 21, 2008; 8:00 AM ET  | Category:  Management Tip of the Day
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