Discuss the analysis that took place to develop Bright Horizons and the ways in which they overcame unappealing industry characteristics
What will be an ideal response?
Bright Horizons (BH) is a childcare company that was born from an industry with many weaknesses. The firm's analysis showed an industry with no barriers to entry, profit margins were low, the industry was labor intensive, there were low economies of scale, there was no clear brand differentiation, and there was lack of regulation in the industry. Instead of establishing new independent centers, BH formed partnerships with companies to provide daycare services to employees with small children. The advantages over traditional methods included a powerful, low-cost marketing channel, a partner to supply the funds to build and equip the centers, a partner with a vested interest in the success of the programs, and proximity benefits to parents.
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The free cash flow valuation model is based on the same principle as the P/E valuation approach; that is, the value of a share of stock is the present value of future cash flows
Indicate whether the statement is true or false
________ is an electronic delivery system for financial transactions
A) Electronic funds transfer B) Computer assisted drawing C) Federal depository banking system D) None of the above