How Can a Company Continue an Unprofitable Business?

Why do companies continue to invest in projects in the red and in areas from which competitors exit successively? Many companies have exited the two-layered copper clad laminate (CCL) market, which is part of the greater electronics material market. Among companies in that market, Nippon Steel Chemi...

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Main Author: Kenichi KUWASHIMA
Format: Article
Language:English
Published: Global Business Research Center 2017-04-01
Series:Annals of Business Administrative Science
Subjects:
Online Access:https://www.jstage.jst.go.jp/article/abas/16/3/16_0170227a/_pdf/-char/en
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author Kenichi KUWASHIMA
author_facet Kenichi KUWASHIMA
author_sort Kenichi KUWASHIMA
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description Why do companies continue to invest in projects in the red and in areas from which competitors exit successively? Many companies have exited the two-layered copper clad laminate (CCL) market, which is part of the greater electronics material market. Among companies in that market, Nippon Steel Chemical continued to operate and became successful despite running a deficit for more than 10 years. Like the company’s competitors, Nippon Steel Chemical has considered halting investment in research and development of two-layered CCLs. However, the company decided to continue investing because it implemented a system for making decisions that emphasizes assessments of potential major customers, in addition to its own standard internal assessments.
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spelling doaj.art-25570f6302f841438c97ca20dd82b1f12022-12-21T23:02:29ZengGlobal Business Research CenterAnnals of Business Administrative Science1347-44641347-44562017-04-0116312513510.7880/abas.0170227aabasHow Can a Company Continue an Unprofitable Business?Kenichi KUWASHIMA0Graduate School of Economics, University of TokyoWhy do companies continue to invest in projects in the red and in areas from which competitors exit successively? Many companies have exited the two-layered copper clad laminate (CCL) market, which is part of the greater electronics material market. Among companies in that market, Nippon Steel Chemical continued to operate and became successful despite running a deficit for more than 10 years. Like the company’s competitors, Nippon Steel Chemical has considered halting investment in research and development of two-layered CCLs. However, the company decided to continue investing because it implemented a system for making decisions that emphasizes assessments of potential major customers, in addition to its own standard internal assessments.https://www.jstage.jst.go.jp/article/abas/16/3/16_0170227a/_pdf/-char/ennew business developmentelectronics materialfunctional chemicalsgo or no-go decision
spellingShingle Kenichi KUWASHIMA
How Can a Company Continue an Unprofitable Business?
Annals of Business Administrative Science
new business development
electronics material
functional chemicals
go or no-go decision
title How Can a Company Continue an Unprofitable Business?
title_full How Can a Company Continue an Unprofitable Business?
title_fullStr How Can a Company Continue an Unprofitable Business?
title_full_unstemmed How Can a Company Continue an Unprofitable Business?
title_short How Can a Company Continue an Unprofitable Business?
title_sort how can a company continue an unprofitable business
topic new business development
electronics material
functional chemicals
go or no-go decision
url https://www.jstage.jst.go.jp/article/abas/16/3/16_0170227a/_pdf/-char/en
work_keys_str_mv AT kenichikuwashima howcanacompanycontinueanunprofitablebusiness