The Profit Zone - How Strategic Business Design Will Lead You to Tomorrow's Profits

Zusatztext “Rarely—if ever—have any observers so skillfully dissected these executives’ strategies to create lessons that can be taught to anybody.... The Profit Zone provides insights and lessons aplenty.”—John Byrne! BusinessWeek “ The Profit Zone is so insightful that most managers will pray that their competitors never read it.”—Richard D’Aveni! Amos Tuck School of Business! Dartmouth College! and author of Hypercompetition “ The Profit Zone could safely come with a guarantee that it would increase a company’s profit if management read it and acted on it.” —Philip Kotler! Kellogg School of Management! Northwestern University Informationen zum Autor Adrian J. Slywotzky and David J. Morrison, Authors of Profit Patterns and How Digital Is Your Business?; with Bob Andelman Klappentext The book that answers the most fundamental question in business: Where Will I Make a Profit Tomorrow? Why do some companies create sustained, superior profits year after year? Why are they always far ahead of their competitors in discovering the ever-changing profit zones of their industry? Why do others languish as their traditional way of doing business turns into a no-profit zone? The Profit Zone provides the answers. It is a brilliant, original, and practical explanation of how and why high profit happens. Chapter 1 Market share is Dead The number one problem in business today is profitability. Where will you be allowed to make a profit in your industry? Where is the profit zone today? Where will it be tomorrow? The profit zone is the area of your economic neighborhood where you are allowed to earn a profit. To reach and operate in the profit zone is the goal of every company. You've been told how to get there. "Get high market share and the profit will follow." "Get high growth and your profits will expand." As a manager, you were schooled in how the pursuit of market share and growth automatically places you on a direct route to business success. However, these formerly direct roads have become mazes riddled with traps, wrong turns, and dead ends. Many large companies, after taking the turn toward market share and volume growth, have only hit a profitless wall. * * * Market share was the grand old metric, the guiding light, the compass of the product-centric age. Companies focused on improving their product and building economies of scale. This product-centric thinking led to the battle cry: "Get more market share and the profit will follow." In the past decade, some disturbing examples began to subvert the widespread faith in market share as the ultimate goal and guarantor of business success. Consider the experience of IBM, DEC, GM, Ford, United Airlines, US Steel, Kodak, Sears, and Kmart. All achieved leading market share positions: number one or number two in their industries. Yet all these market share leaders saw their profitability begin to erode during the 1980s. Their dominant share positions did not protect them. As profitability began to be detached from market share, shareholders began to suffer. Despite their strong market position, these market share leaders significantly underperformed the S&P 500 from 1985 to 1995. Several of these companies have recently initiated radical changes in their business design. Their new focus on profit, not just market share, has led to dramatic rebounds in value. As a result, many other traditional market share leaders have been encouraged to reconsider the assumptions on which their business design is built. As you think about your own business, ask yourself: Am I managing for market share, or for profit? Is the market share I own profitable and alive, or is it profitless and dead? There are countless businesses with high market share but low profitability and low shareholder value. The Japanese have a loc...

Product details

• Authors: Bob Andelman, David J. Morrison, Adrian J. Slywotzky
• Publisher: Crown Publishing Group
• Languages: English
• Product format: Paperback
• Released: 26.02.2002
• EAN: 9780812933048
• ISBN: 978-0-8129-3304-8
• No. of pages: 341
• Dimensions: 130 mm x 200 mm x 20 mm
• Subjects: Social sciences, law, business > Business > Management; Unternehmensstrategie, Gewinn