OPERATIONAL GEARING Definition

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OPERATIONAL GEARING is the higher the proportion of fixed costs relative to variable operating costs, the higher the operational gearing. This results in greater business risk. A retailer has high fixed costs relative to variable costs, so has a lot of business risk. See GEARING and FINANCIAL GEARING.

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DURABLE COMPETITIVE ADVANTAGE (DCA) see SUSTAINABLE COMPETITIVE ADVANTAGE.

MARKET SEGMENT is a group of consumers, within a broader market, that has similar characteristics and needs.

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