Appear Quote by Timothy Noah
“Wal-Mart uses technology to increase sales volume, but the more it does so, the more it drives down profit margins - its own and everybody else's. The same logic does not appear to hold for Goldman Sachs.”
About This Quote
Source Article: Bloomberg Businessweek, 2015
Increasing sales through technology can compress profit margins for all players, unlike Goldman Sachs' model.
In simple terms: Tech boosts sales but cuts margins; Goldman Sachs differs.
Key Takeaway
Consider margin impacts before scaling tech.
Themes
business
technology
profit
competition
finance
Mood
analytical
critical
Type
observational
strategic
When to use this quote
- retail strategy
- financial services
- pricing decisions
Key Concepts
economics
market dynamics
cost structure
Questions to Reflect On
- How does technology affect profit in your industry?
- Can scale offset margin compression?
A Different Perspective
Margins may still shrink despite higher volume.
