Book Description
Winning by not competing: a fresh approach to strategy Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet these hallmarks of competitive strategy are not the way to create profitable growth in the future. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne argue that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, the authors argue that lasting success comes not from battling competitors, but from creating “blue oceans”: untapped new market spaces ripe for growth. Such strategic moves—which the authors call “value innovation”—create powerful leaps in value that often render rivals obsolete for more than a decade. Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.
Customer Reviews:
Question the status quo.......2007-09-25
The book forced me to rethink the way I normally would look at business developments for my companies: either value based or feature based. The idea of a creating new space in a crowded market and making a leap in growth through the blue ocean strategy stirred up my thinking juices. Personally, I don't like how to books with "three simple steps" This book was great; a must read.
Good Book.......2007-09-24
1. This is NOT a marketing book
2. There is no such thing as a fail safe strategy
3. This is a tool and is only as good as the user
4. Applicable in different situations
5. Good companion to Competitive Strategy written in the 80's by Mike Porter which is THE industry book
6. The book is NOT a pioneer and is NOT proported to be. It is a study in those companies who seemed to have created new markets such as Cirque De Soleil. The authors did NOT set out to create a new "theory" and then retroactively "fit" companies but rather study an emerging pheonom. and try to locate patterns.
I think that pretty much covers all the gripes of the previous entries. I first came across this book in a competitive strategy class in a business organizational change degree. It is an excellent text and gives another viewpoint to the old study of competitive strategy. I have used the strategy canvas tool located in chapter two AS A TOOL to assist me in both departmental and industry situations to locate existing patterns of competition.
Worth the money.
But then, I am just a "mere" academic (albeit with many years of industry experience) so if you truly do not like the book I suggest returning it. :)
What is your greatest challenge?.......2007-09-13
The greatest struggle for most business people is to come up with a truly original and valuable idea. Close behind that is how to get employees to work together. This book makes me want to cry, because it actually, simply, lays out how to do both. Beautiful.
Academics rarely demonstrate how to do it!.......2007-09-11
I bought this book. Their identifications are valid enough. Great companies have always created uncontested market space while making their competitors irrelevant. This is not in dispute. However...
The authors Chan Kim & Renee Mauborgne are just mere academics. And what is annoying is that they haven't battle tested their Blue Ocean model from hard knocks in the trenches business wars to find out what works and what doesn't for themselves! Again, this is what I find annoying with academics. They say a lot but never prove it themselves! Remember Merton & Scholes and LTCM?
For an example...in the book, the authors have an interesting strategic canvass graph approach that supposes to prove how Blue Ocean events come about. That's fine, but how do you prove it? Moreover, the 'values' are different for each company, so there is nothing consistent to glean from this.
What I'd like to have seen is a Dash Board type matrix template that allows any company or budding entrepreneur to carry out Blue Ocean due diligence on any industry or market niches...proofing these Blue Ocean catchments from a zero learning curve application! The book does have important points but lacks the cutting edge tools to unify Blue Ocean diligence and proofs for any company!
Thus, what this book lacks is a more honed processing of enquiry from the authors. And I suspect this to be the case because like many academics they haven't proven the unifying dynamics that goes into capturing Blue Ocean strategies for themselves with businesses they have built through their own mindset!
Again, this book is a case of 'do what I say, because I don't have to prove what I say'.
There are great industry shapers out there who can shift and move whole industries and markets in their favour...but the authors of this book are not one of them.
However, there are great positives the authors have identified. The book contains a very interesting 'Strategic Grid' technique. From this simple grid technique any one can mentally survey how to change one's industry or market from a macro-vantage point. But shifting and moving your new found Blue Ocean grid at a tactical level to rule your competition making them irrelevant is another matter entirely. The chapters that explain this grid are worth the book, but don't expect any thing else.
What you really want is a knowledge base that allows you to dig out Blue Ocean criteria from a template of enquiring tools STACKED PROCESS BY PROCESS UNTIL YOU PROOF YOUR OWN BLUE OCEAN POWER. This book fails on this!
I would suggest that any one buying this book should read 'Blue Print to a Billion by David Thomson to understand how real Blue Ocean executions are carried out correctly. In addition, Chet Holmes' Ultimate Sales Machine' gets you to understand how to carry out big frame strategies at the tactical level.
Both these books will plug the holes lacking with Kim & Mauborgne's work.
Blue Ocean Strategy.......2007-09-10
I like the non text book clear presentation. You do not have to have an MBA to enjoy and learn from this book.
Book Description
Companies must innovate to grow, but they often forget to look beyond their own brands. Take Sony, for example. Its success with consumer innovations like the Walkman blinded it to obvious changes in how, when, and where people wanted their music. Apple capitalized on those changes in demand with the iPod, providing a new way of listening to music and of managing one’s entire music library.
This book explains how you can spot these opportunities that are hidden in plain sight. It introduces the demand-first innovation and growth model that will show you how to become an unbiased observer of people’s consumption and usage behaviors. Refining this skill helps companies generate organic growth through new products, services, solutions, and experiences that truly enhance peoples’ lives. Revealing the innovative processes of such organizations as BMW, Proctor and Gamble, GE Healthcare, and Frito-Lay, Hidden in Plain Sight offers you a new approach to identifying and executing your company’s growth strategy.
Customer Reviews:
A growth strategy from the outside in.......2007-10-15
Erich Joachimsthaler's book Hidden in Plain Sight challenges conventional wisdom on marketing and marketing strategy. There are a number of books advocating this 'outside in' view on strategy and growth.
Joachimsthaler's approach of DIG for Demand-first Integration and Growth Model provides a comprehensive set of tools and methods for defining growth opportunities based on an understanding of the external environment rather than trying to change the world to fit your products and services.
Joachimsthaler provides a full description of the processes and tools including a number of case studies that describe companies that have grown through innovation and an outside in view. These are the strengths of the book.
These strengths are also the books weakness. By talking extensively about companies like BMW, GE, PepsiCo, etc, the book's main messages get bogged down in the text. Many of these cases have not used Joachimsthaler's DIG methodology, so there is little to connect the case to the argument he is advancing. This makes the book drag in some places and confuses Joachimsthaler's argument.
Overall the book is recommended as the combination of tools and methodology provides a valuable resource for companies looking to change their marketing approach and results. Other resources to consider include Chris Zook's "Unstoppable" and Davenport and Harris's "Competing on Analytics."
The Formula for Innovation and Growth.......2007-07-14
Erich Joachimsthaler provides a systematic approach to make marketing accountable for innovation and growth of BtoC and BtoB companies. We have seen the innovative business concept of share of customer evolve and being executed over the last years. Hidden in Plain Sight pushes that practice further to the concept of customer advantage, which means consequently managing impact and relevance, products and services have on customers daily lifes - on customers share of the day.
Erich Joachimsthaler formulates an explicit model, the demand-first innovation and growth model (DIG-Model), that illuminates the advantages of creating the demand landscape and sets a plan for action to specify the necessary effort to capture the relevant parts of the ecosystem of customer demand, reframes the specific business opportunity space, aligns business processes across all functions and sets the foundation for sustainable innovations and predictable growth.
As one reads the carefully selected international cases (e.g. Procter & Gamble, BMW, Apple, Deutsche Telekom, Volkswagen, NetFlix, Starbucks, General Electric, Sony, Allianz) reference is made to all parts of the DIG model and how all pieces have to work together to execute in business practice. Based on his deep insight and understanding of many industries, Erich Joachimsthaler proves his approach carefully and outlines, how innovation and growth can be systematically and replicable managed. That is why this book is relevant for people from many business functions and a variety of industries.
Thanks for this outstanding business book.
Kevin Frantz
Excellent.......2007-06-28
This is an excellent book, an eye opener for any professional in marketing, particularly those fighting the dog war of private labels and commoditization.
A popular, inspirational pick........2007-06-17
Business managers and executives who want keys to locating the potential for a company's expansion will want to consult HIDDEN IN PLAIN SIGHT: HOW TO FIND AND EXECUTE YOUR COMPANY'S NEXT BIG GROWTH STRATEGY. It pinpoints changing consumer needs and usage patterns and tells how to use the DIG model to help companies understand the hidden opportunities for innovation, using the author's 20+ years studying company connections to help pinpoint customer-driven ideas. Business libraries catering to executives will find it a popular, inspirational pick.
Diane C. Donovan
California Bookwatch
The Invisibility of the Obvious.......2007-05-23
Erich Joachimsthaler offers what he claims is a "new model of strategic innovation for achieving profitable business growth" by abandoning "some of the tried and proven conventions of innovation, marketing, and strategy formulation" and by discarding "some of today's common assumptions and management practices and adopt a fresh way of planning an executing your strategies today and your innovation and growth strategies of tomorrow." The key word is "some" as he explains how.
After discussing "hidden opportunities to innovate and grow" in Part I, he focuses in Part II on several companies which exemplify a demand-first innovation and growth model (e.g. Frito-Lay, Allianz, GE Healthcare, and State Street) and then shifts his attention, in Part III, to various strategies by which to realize customer advantage.
As the title of this book suggests, Joachimsthaler asserts - and I agree - that many senior-level executives lack the ability to see - really see - "the opportunities presented by the changing consumption or usage behaviors of people [their organizations are] trying to serve. [They] cannot spot or recognize and pursue the abundant opportunities that exist in plain sight." Why? Joachimsthaler suggests several reasons which include routine but disparate processes which fragment a company's view of its customers, perpetuation of the status quo which limits a company's perspective on its competitive marketplace, a mistaken belief that "the key to growth lies in identifying customers' needs and wants [and/or] providing solutions for the tasks or jobs it knows customers must take on and get done," and an "inside-out" perspective which results in what Theodore Levitt once characterized as "marketing myopia."
Joachimsthaler suggests three lessons that can be learned from companies such as NetFlix, Sony, and Starbucks:
1. Position existing or new products or services at natural intersections of customers' consumption and use behaviors;
2. Change or enhance customers' daily routines and create transformative experiences around activities, projects, and tasks in new and welcome ways; and
3. Deliver on previously unleashed or unarticulated desires, dreams, fantasies, and urges in the social-cultural context of people's lives.
The demand-first innovation (DIG) model can be of substantial benefit to any organization (regardless of size or nature) but it would be a fool's errand to attempt to apply all of the ideas that Joachimsthaler presents. Rather, It would be a fool's errand for anyone who reads this book to attempt to apply all of the ideas that Joachimsthaler presents. Rather, he suggests that those who read this book clearly identify their organization's key demand-relevant assets and make full use of them, rigorously evaluate and develop their organization's distinctive capabilities deployed to manage those assets, choose only those major strategic initiatives that force the integration of all demand-facing processes, and "build the culture" with innovation initiatives at all levels and within all areas throughout what should be a demand-driven enterprise.
Joachimsthaler calls for nothing less than "the activation of demand-first growth platforms by whatever means [to] help customers absorb or assimilate an innovation, or retool old ways of doing things, into their daily life or work experiences." Only then can an organization find and execute its next big growth strategy.
Customer Reviews:
It's not the delivery; it's the content.......2007-09-25
Blue Ocean Strategies are responsible for HUGE amounts of wealth having been generated by many people and many companies.
However, these CD's are delivered with NO Narrative and since the concepts in the book are shared using diagramatic tools which clarify the text; listening can some times be trying and laborious.
Getting past that will reward you with a whole new way to think of markets and marketing.
I recommend them for those interested in the subject for more than just entertainment. You'll want to read the book to get the part you miss.
Several chapters too long.......2007-09-23
Overall this is a fantastic title but condensed it is not. The authors could have written it in half as many pages without losing any useful information. In terms of content its a solid 8 our of 10.
Game show host voice with many mispronunciations.......2007-07-09
I must say that there were some interesting observations conveyed throughout the book, but the 'Game Show Host Voice' of the reader, the many mispronunciations, and the shear repetition of only vaguely interesting business examples from 100 years ago leads me to giving this book a low score.
Excellent!.......2007-06-27
I have read many management books and was looking for a good book on strategy and strategic planning. I bought Strategic Planning for Idiots and it is just that. By contrast Blue Ocean is insightful, applicable and gives a frame of work to get an organization to think about value innovation.
The audio CDs are great! The reader is really good.
Blue Oceans Okay.......2007-05-30
The CD version of the book was okay. Some good ideas sprinkled throughout the book but a fair amount of repetition of the same ideas.
Average customer rating:
- Unnecessarily Complex
- A finance textbook full of errors and holes
- A Wonderful Approach to Corporate Finance
- Good basic overview of finance intersecting corp strategy
- Missed the mark! Poor coverage of contemporary issues...
|
Financial Markets & Corporate Strategy
Mark Grinblatt , and
Sheridan Titman
Manufacturer: McGraw-Hill/Irwin
ProductGroup: Book
Binding: Hardcover
 General
| Popular Economics
| Business & Investing
| Subjects
| Books
Corporate Finance
| Finance
| Business & Investing
| Subjects
| Books
General
| Business & Investing
| Subjects
| Books
General
| Accounting
| Industries & Professions
| Business & Investing
| Subjects
| Books
Investing
| Business & Investing
| Subjects
| Books
| Bonds
| Commodities
| Futures
| General
| Introduction
| Mutual Funds
| Options
| Real Estate
| Stocks
Management & Leadership
| Business & Investing
| Subjects
| Books
| Business Ethics
| Consolidation & Merger
| Decision-Making & Problem Solving
| Distribution & Warehouse Management
| Industrial
| Information Management
| Leadership
| Management
| Management Science
| Motivational
| Negotiating
| Operations Research
| Planning & Forecasting
| Pricing
| Production & Operations
| Project Management
| Quality Control
| Risk Assessment
| Statistics
| Strategy & Competition
| Systems & Planning
| Systems Analysis
| Teams
| Total Quality Management
| Training
General
| Accounting
| Accounting & Finance
| Professional & Technical
| Subjects
| Books
General
| Finance
| Accounting & Finance
| Professional & Technical
| Subjects
| Books
General
| Accounting
| Business & Finance
| New & Used Textbooks
| Stores
| Books
General
| Business & Finance
| New & Used Textbooks
| Stores
| Books
General
| Economics
| Business & Finance
| New & Used Textbooks
| Stores
| Books
Corporate
| Finance
| Business & Finance
| New & Used Textbooks
| Stores
| Books
All Titles
| Qualifying Textbooks - Fall 2007
| Stores
| Books
Business & Investing
| Qualifying Textbooks - Fall 2007
| Stores
| Books
Professional
| Qualifying Textbooks - Fall 2007
| Stores
| Books
ASIN: 0072294337 |
Book Description
The authors began writing the First Edition of this textbook in early 1988. It took almost 10 years to complete this effort, because they did not want to write an ordinary textbook. Their goal was to write a book that would break new ground in both the understanding and explanation of finance and its practice. They wanted to write a book that would influence the way people think about, teach, and practice finance. A book that would elevate the level of discussion and analysis in the classroom, in the corporate boardroom, and in the conference rooms of Wall Street firms. They wanted a book that would sit on the shelves of financial executives as a useful reference manual, long after the executives had studied and received a degree. They were successful in their endeavor. The success of the first edition of Financial Markets and Corporate Strategy was very heartening. The market for this text has expanded every year, and it is well-known as the cutting edge textbook in corporate finance around the world. The book is used in a variety of courses, both for introductory courses and advanced electives. Some schools have even changed their curriculum to design it around this text. The authors have developed this Second Edition based on the comments of many reviewers and colleagues; producing what is a more reader-friendly book. The most consistent comment from users of the first edition was a request for a chapter on the key ingredients of valuation: accounting, cash flows, and basic discounting. This ultimately led to a new chapter in the text, Chapter 9, which is currently available in the "Sample Chapter" section of the book's website. In almost every chapter, examples are updated, vignettes changed, numbers modified, statements checked for currency and historical accuracy, and exercises and examples are either modified or added to. The goal of the Second Edition is to make the book ever more practical, pedagogically effective, and current.
Customer Reviews:
Unnecessarily Complex.......2006-08-28
Author devotes 2 pages to mathematically prove & philosophically justify that a manager should chose the highest NPV project before chosing the next highest NPV project. Such logic continues ad infinitum throughout the 800+ page text. Time for 3rd Ed.
A finance textbook full of errors and holes.......2005-05-07
I am a postgraduate student in finance and this book is on my reading list for corporate finance. I must say that I am not very pleased with this book. First, it seems to skip around from chapter to chapter with no real logical organizational structure. Second, it is full of typos and mistakes -- some that are quite dangerous for a proper understanding of the material. Third, it does not develop fully the statistically techniques in Chapter 4 that it builds on in later chapters. This is a major problem in my opinion. What saves this book from the lowest rating is that it does discuss empirical studies and journal articles, and it does not do an entirely awful job about the more qualitative subjects like adverse selection and capitalization policy.
For what it's worth, I received my undergraduate degree at Wharton and am now at the London School of Economics. Instead of this book, I recommend Brealey and Myer's Principles of Corporate Finance. This is what I used as an undergraduate and is what seems to be the de facto textbook in the top undergraduate and MBA programs.
N.
A Wonderful Approach to Corporate Finance.......2005-04-12
I will admit this book does not take the standard approach to learning corporate finance. The authors discuss a wide variety of common topics, ranging from market models, option valuation, capital structure concepts and decisions, to more specialized topics such as corporate governance and financial risk management.
What is unique about this book, though, is that the authors encourage students to think about problems more broadly than one often sees in introductory texts and courses. For example, the authors encourage the use of decision trees (i.e. binomial models) to value a wide range of assets, not just stocks. If one can value a stock option using a binomial tree, why not use the same framework to value a plot of undeveloped real estate, an untapped mine, or any other "real option" owned by a company?
Another reason this text is excellent is because the authors include a vast survey of recent financial and economic literature relevant for the financial decision-maker. Highly developed markets depend on the signaling of information between investors and management, creditors and debtors, customers and suppliers, and so forth; understanding the implications of these interactions and their subsequent effects is of primary importance to decision-makers.
For example, the "pecking order" theory of capital structure is one of the most well-known concepts in finance, but nonetheless often misunderstood (if you want proof of this, why did investors respond so enthusiastically to every IPO in the late 1990's?). Instead of glossing over an explanation of the theory, the book thorougly explains it and provides problems where the reader can actually work through a simplified model that really reinforces the concept.
While this book served as a good introduction to a wide scope of problems in finance, it was most useful because it helped me to apply economic tools not just to solve but to understand financial problems. The use of decision trees in the simplified, binomial model setting helped me to understand option/project valuation and risk-netural valuation, the linchpin of no-arbitrage pricing. It also has perhaps the most thorough, lucid explanation of Arbitrage Pricing Theory (APT) I've seen anywhere- for a practitioner trying to understand factor models, this chapter alone makes the book worth it.
I understand that this is a very difficult book and that the problems are beyond what one may expect in a MBA-level course. Nonetheless, finance is an increasingly competitive field whose employers are starting to demand more analytical skills and intiution from recent graduates. In response to the reviewer who said this text is not suitable for CFA preparation, I do agree with that sentiment. First, the CFA program is designed for self-study that any motivated and capable professional can handle, while Grinblatt/Titman is clearly appropriate for a rigorous MBA-level sequence in corporate finance. Second, the CFA exam emphasizes asset valuation and portfolio management, while this book stresses financial decision-making from a manager's standpoint.
While I normally don't like reviews that justify their opinions by offering credentials, I also work on Wall Street and I find the concepts taught in this book to be quite relevant in handling real-world problems.
Good basic overview of finance intersecting corp strategy.......2005-02-25
I bought this book as a recommended supplemental text for a course in Corporate Finance in the MBA program at the U of Michigan Business School. I am very glad to have this book on my shelf of financial books and have benefited from it more than once.
I can recommend it to you strongly by praising it for these reasons:
1) It puts practical flesh on the financial model bones you learned in your first course on finance. There are very good discussions of the basic and well-known fundamental theories and models, but the authors also share with us what tends to happen in the real world. And isn't that what each of us need to add to our theoretical thinking?
2) Each chapter has effective summarizing Key Concepts and Key Terms with plenty of problems to work through and a list of References and Additional Readings that enable the reader to dive deeper into the topic of the chapter just read.
3) The book is helpfully organized into six Parts that provide the framework for the discussion. Parts 1-3 are a review of "Financial Markets and Instruments", "Valuing Financial Assets", and "Valuing Real Assets". This foundation gives the student a good grounding in order to see how these principles are used in the work of managing the capital structure of a corporation. Parts 4-6 discuss the "Corporate Financial Structure", "Incentives, Information and Corporate Control", and "Risk Management". These last three sections are the real meat of the book and where a great deal of its value to the business student lies.
4) Each of the Parts has an effective and brief introduction that sets the tone for what is to be studied. Even better, at the end of each the six Parts there are two very helpful summary sections: "Practical Insights" and "Executive Perspective".
This is a specialized topic. But it is an important topic. This is a very good book that can help a serious student get grounded in some very important principals necessary to managing the financial issues facing every corporation. I recommend it.
Missed the mark! Poor coverage of contemporary issues..........2004-12-22
This text is just below par for MBA / CFA or professional use. The quality of research is very poor. I almost bought this book recently but changed my mind instead for Brigham's "Intermediate Financial Management".
Compared to other finance texts I've used before such Reilly's "Investment Analysis & Portfolio Mgt." or Chew's "New Corporate Finance", Grinblatt's text is way way behind and offers nothing new and of value to my research & professional everyday use....
DON'T BUY this lousy book!
Book Description
All companies must grow to survive-but only one in five growth strategies succeeds. In Profit from the Core, strategy expert Chris Zook revealed how to grow profitably by focusing on and achieving full potential in the core business. But what happens when your core business provides insufficient new growth, or even hits the wall?
In Beyond the Core, Zook outlines an expansion strategy based on putting together combinations of adjacency moves into areas away from, but related to, the core business, such as new product lines or new channels of distribution. These sequences of moves carry less risk than diversification, yet they can create enormous competitive advantage, because they stem directly from what the company already knows and does best.
Based on extensive research on the growth patterns of thousands of companies worldwide, including CEO interviews with twenty-five top performers in adjacency growth, Beyond the Core (1) identifies the adjacency pattern that most dramatically increases the odds of success: "relentless repeatability;" (2) offers a systematic approach for choosing among a range of possible adjacency moves; and 3) shows how to time adjacency moves during a variety of typical business situations.
Beyond the Core shows how to find and leverage the best avenues for growth-without damaging the heart of the firm.
Customer Reviews:
Practical and Insightful .......2005-03-28
What is especially useful about this book is that it is practical. It gives advice for every stage of an adjacency expansion, from strategy development to execution, on how to increase the likelihood that it will be successful. The case studies are interesting and the analysis is insightful.
For people like me who do not have a business background or management consulting experience, this book is an excellent read and, at the very least, should get you by at parties where you would run into such people.
An Outstanding Growth Guide for Global Business Leaders.......2004-05-13
As a second year MBA student at the Kellogg School of Management and a future corporate strategist for a global financial services firm, I found reading Beyond the Core to be one of the best time investments that I've made over the last few years. Chris Zook seems to have a knack for writing great books that not only stand the test of time but that are also highly relevant to the current business and economic environments. Specifically, his first book, Profits from the Core, which focused on maximizing the value of the core business, was launched when businesses needed it most - during the economic downturn. Now, Beyond the Core is perfectly timed since, from what I and other MBA's are observing in the market, most businesses are remobilizing for growth.
Overall, I greatly enjoyed Beyond the Core - it's a relatively quick read that is focused, insightful and well structured. More specifically, I think there are three key things that make this book stand out in comparison to many other business books I've read: 1) it takes a global perspective 2) it is highly data driven and has great examples and 3) its very actionable and offers lots of insights on implementation.
To elaborate, the first thing I really liked about Beyond the Core is that it takes a truly global perspective with examples from Europe, Asia and Latin America. As an MBA student majoring in International Business Strategy who will be working in a global firm after graduation, it was great to read about the strategies that firms such as Li & Fung (HK), Ambev (Brazil), Lloyd's Bank and Vodephone (UK) and STMicroelectronics (Italy). Overall, I also liked that the book mixes an array of fresh case studies (Tesco, Biogen, Ambev) with more traditional ones (Dell, Nike, American Express).
Secondly, Beyond the Core is highly data driven and the recommendations are based on empirical evidence, not conjectures. As a student of business strategy, I too often come across books or theories that are supported by nothing other than a few select examples that prop up the author's hypotheses. Beyond the Core, in contrast, is supported by an enormous amount of financial, competitive and market research and by many CEO interviews and studies by Bain & Company. This is extremely insightful as it helps the reader understand the odds of success and failure across the business world and thus leads to much more informed strategies.
Finally, Mr. Zook has focused nearly a third of the book on implementation and execution strategy. This makes the book and its recommendations highly actionable instead of leaving the author asking "so what?" The book sets out a systematic and understandable road map for adjacency expansion. More importantly, it discusses issues that are critical to growth initiatives such as: organizational structure, decision making processes, staffing, accountability and reporting, etc.
In sum, I highly recommend Beyond the Core, especially to global business leaders looking for a practical guide for profitably growing their businesses. Enjoy!!
Questionable Choice of Examples and Lack of Definitions!.......2004-03-15
Many people who have been burned by going into new areas will grade this as five-stars for encouraging caution in expanding a company's scope. If that's all you want from a book, this is a five-star book. If you want to learn what the exact lesson is, and why that lesson is true, you'll have to look elsewhere however. If you want to learn how to beat the odds in this area, you will also have to look elsewhere.
I found Profit from the Core to be a directionless mishmash of data without firm definitions that repeatedly espoused the idea of "stick to your knitting." As a result, I took up Beyond the Core with great trepidation. At first blush, Beyond the Core seemed to cure some of the peripheral problems of Profit from the Core . . . until I began to notice how almost all of the important examples of continuing business model innovation had been excluded that seemed to fit all of the criteria (except perhaps being willing to be interviewed by the author). Mr. Zook continues to avoid defining what "the core" is, so that basic problem continues.
The book's message is "stick to your knitting . . . unless you have not choice . . . then don't go away from your cost advantages and knowledge." If you want to know a little more about that message, you can read all of the key points in the book summarized in the Afterword on pages 189-192 in less than five minutes.
The book will mainly be helpful to those who are thinking about making unrelated acquisitions. The advice: Don't do it! The odds are way against you . . . but even the most unrelated acquisitions sometimes work (GE bought NBC and has done well with it, for example). The book lacks clear direction for how some overcome the odds.
The book was also curiously silent about how companies can use small experiments to test their way into new areas. That's the way that most firms expand beyond their core.
The methodology looks very much like those employed in Build to Last and Good to Great . . . but don't believe it. Cases were selected in part based on whether Mr. Zook could interview the companies. So it's really a subjective sample. So take the conclusions with a selective grain of salt. Here are some of the cases of those who have prospered with expanding into new areas that seem to fit the Zook criteria but don't appear in the book: Beckman Coulter; Berkshire Hathaway; Clear Channel Communications; Education Management; GE; Iron Mountain; Nucor; Paychex; Sony; Virgin Group; Xilinx; and Zebra Technologies. It's not surprising that the book fails to describe the discipline of continual business model improvement as a best practice . . . a serious omission for this subject.
Ultimately, I think the flaw behind the book is to look at moving "beyond the core" separately from looking "at the core." If the two books had been combined into one that looked at how to outperform the competition, there would have been the basis of helpful insights. Or, this book could have been scoped down into how to grow into new areas with internal development activities versus acquisitions. That would have been helpful. But with the focus of "beyond the core," you are left in a never-never land that you may not want to be in. The other interesting question that could have been addressed is how companies prospered by eliminating the old core and replacing it with a new one through acquisition as a number of companies have.
As I thought about why the author might have chosen this direction, I realized that it may be an unconscious use of the older ways of strategic thinking. Those analytical schemes separated thinking about existing business areas from entering new ones. For some time though, most strategic thinkers have emphasized seeing the questions as connected. You should, for example, be pursuing your best opportunities. That means comparing all choices in some manner at the same time.
The other problem with data-heavy studies like this one is that you are relying on backward impressions (with 20-20 hindsight). Studies of best practices are best done by looking at the decisions and actions when they are made . . . and then measuring the results to see what happens. Interviews taken at such times reveal much different information than the neat success stories spun after the fact. Clayton Christensen does a good job of explaining this issue in chapter one of his new book, The Innovator's Solution.
As I finished the book, I began to think about the many unsuccessful unrelated acquisitions that I have run into among companies. In almost every case, I remember reading a thick book by a name consulting firm that had explained at the time of the purchase why the acquisition could not miss. Perhaps a follow on for this book would be how to avoid bad advice in evaluating acquisitions.
Not All Adjacencies Are Appropriate.......2004-02-12
Perhaps you have already read Profit From the Core: Growth Strategy in the Age of Turbulence which Zook co-authored with James Allen. It was based on rigorous research which revealed the key strategic decisions that most often determine growth or stagnation in business. They note: "Central to our findings are three ideas: the concept of the core business and its boundaries; the idea that every business has a level of full-potential performance that usually exceeds what the company imagines; and the idea that performance-yield loss occurs at many levels, from strategy to leadership to organizational capabilities to execution." In the five chapters which follow, Zook (with Allen) examines "the types of strategic business decisions that most often seem to tilt the odds of future success or failure." Zook correctly suggests in this book that many organizations cannot resist the appeal ("the siren's song") of "miracle cures" of their problems. Zook focuses entirely on what has been verified in real-world experience, on what is practical, and on what will reliably achieve the desired results of sound strategic decisions.
In the first chapter of this book, Zook discusses what he calls "the growth crisis" which many (most?) organizations encounter. He observes, "Finding or maintaining a source of sustained and profitable growth has become the number one concern of most CEOs. And moves that push out the boundaries of their core business into 'adjacencies' are where they are most often look these days." I agree with Zook that these strategies have three distinctive features: "First, they are of significant size, or they can lead to a sequence of related adjacency moves that generate substantial growth. Second. they build on., indeed are bolted on, a strong core business. Thus the adjacent area draws from the strength of the core and at the same time may serve to reinforce or defend that core. Third, adjacency strategies are a journey into the unknown, a true extension of the core, a pushing out of the boundaries, a step-up in risk from typical forms of organic growth." Much of the material in this brilliant book is guided and informed by what Zook claims is "the new math of profitable growth." Specifics are best provided by Zook himself.
Zook presumes that those who read this book already know what a core business is, and more specifically, what the core business is of their respective organizations. Given his objectives, that assumption is probably necessary so that he can explore the opportunities which (key word) appropriate adjencies offer. Fair enough. However, my own experience suggests that companies frequently extend the boundaries of a core business without fully understanding what that core business is. Railroads probably offer the best example. Only much too late (if then) did senior-level executives at major railroads realize that their core business was transporting people and cargo, NOT "railroading." Obviously, trains are confined to the tracks as are ships to the water and trucks to the roadways over which they proceed. Early on, what if owners of railroads and their associates had addressed questions such as those Zook poses in his Preface (Page ix)? Had they done so, presumably they would have recognized appropriate adjacencies which include taxi cabs, Super Shuttle, local delivery services, and "overnight" delivery services (e.g. DHL, FedEx, and UPS). While they're at it, why not own or forge strategic partnerships with over-the-road trucking companies and cargo airlines? Given the central locations of railroad stations in major metropolitan areas, it would have been easy enough to combine a full-range of travel services within an upscale retail mall.
The question to ask, therefore, is not what an organization's core business is. Rather, what could AND SHOULD it be? The correct answer to that question is important, of course, because without a proper core, there can be chaos. Also, the correct answer suggests appropriate adjacencies by which to achieve and then sustain increasingly more profitable growth.
In the Afterword, Zook imagines himself engaged in what he calls the proverbial "elevator" conversation during which he reviews the "key messages" contained within his book. It serves no good purpose to list them here because each must be carefully considered within a meticulously formulated context. However, once the book has been read, I strongly recommend that all of these "key messages" be reviewed on a monthly (if not weekly) basis. For decision-makers in at least some companies, this may well prove to be the most valuable book they have read in recent years.
Standing Tall.......2004-01-31
Standing Tall among Business Books, Chris Zook has indepth research examples of Companies portraying picture of today's business times. Numerous CEO reports, charts and graphs with real practical illustrations are varied. Outside a core business, the expansion is detailed in this book - on how to go ahead framing and practically applying the ways and means so as not to harness the existence levels. The books offers nurturing roots of business, examples on adjacency expansions with pros and cons of success and failure measures. The name itself speaks big 'Expand market without abandoning Roots' and the rule of the game lies in effective management. The author pin points steps to leverage best avenues and the possible adjacent moves so as to reach competitive edge and pooling profit without harnessing the roots of main frame business. In today's time, with diversifications, 'Beyond the Core'- the book serves a Good Reference and as I read on Chris zook's comments, I feel this is a 'Grab Pick' and Must for all Big Company Executives.
Book Description
"Unquestionably the most comprehensive treatment available on the subject. I found this book unique in its capacity to benefit executives, planning staff, and students of strategy alike."
-- Robert L. Joss, Dean of the Graduate School of Business, Stanford University
Create successful strategies for today's dynamic business environment
It isn't your Dad's (or Mom's) marketplace any more. Business environments once seemed quite stable and simple. Today, every market can be described as dynamic, and you need to adapt your strategies in order to counter the threats and maximize your opportunities.
The Eighth Edition of Strategic Market Management is designed to give you the strategic management tools you need to meet the challenges created by the dynamic nature of markets. Using a variety of concepts and methods such as strategic questions, portfolio models, and scenario analysis, the book outlines the five competencies that spark successful, ongoing strategizing:
Strategic analysis--With an emphasis on external market analysis, this new edition illustrates a structured approach to understanding the customer, the competitor, and important trends that you can apply to your strategic decision making
Stimulating and managing innovation--Understand different types of innovation and deal with the organizational challenges involved in bringing innovations to market
Managing multiple businesses--Know how to allocate resources towards businesses of the future and away from businesses that lack growth potential
Creating advantage--Take a long-term perspective to develop truly sustainable competitive advantages (SCAs)
Developing growth strategies--Gain the skills to energize, leverage, globalize the business, or create new businesses
Significantly revised, with a wealth of new and updated material, Strategic Market Management, 8th Edition remains the most authoritative guide to creating business strategies that will be relevant and compelling to customers, sustainable even in face of competitive attack, and maximize the assets and competencies of your organization.
Customer Reviews:
Leveraging Secondary Brand Knowledge to Build Brand Equity.......2007-05-16
In my opinion the most clever chapter in the book discusses how brand equity can be built through secondary brand associations.
Strategic Market Management - 5th Ed - Aaker.......2004-02-19
The 5th edition is, in my view, disorganised, unnecessarily complicated and seems to have been hurriedly finished. This text book was required reading for my MBA (Warwick Business School)
Exceptional book!.......2003-07-22
This book was part of the required reading for my MBA program at UCI and so far it is the best strategic marketing text I have read. Prof. Aaker's writing style is both concise and eloquent, very well organized and easy to read. I will keep this book on my bookshelf for a long time, it is very "reusable" and goes way beyond the class room. A must-have for both corporate executives and enterpreneurs.
Simpe, Concise, Precise and Easy to Understand.......1999-07-29
I used this book when I took a strategic marketing class in my MBA program. The author of this book did an excellent job in explaining strategic marketing concepts in a simple but practical way. The main strength of this book is it is very well-organized and easy to follow. The author also used many real-world samples to explain and support marketing concepts presented in the text. I recommend that any business student who has to take business policy class use this book as his or her reference.
An excellent book for marketing strategy.......1999-07-23
I was first exposed to Aakers Strategic Market Management during a marketing strategy course at National University of Singapore. I really appriciated the disposition of the books. It is relatively thin, not many words are useless (which is uncommmon in the case of marketing text books).
Later, still a student, I got the opportunity to develop a marketing strategy for a smaller firm. During this time Aakers book was of the outmost value, being used for reference throughout the analysis. Highly recommendable.
Book Description
In this path-breaking new book, best-selling author and leading go-to-market strategist Larry Friedman provides a practical and battle-tested approach for taking products, services, divisions, or even an entire company to market!
Drawing on dozens of examples and best-practices across a variety of industries, 'Go To Market Strategy' lays out a clear and actionable blueprint for building a winning go-to-market plan - one that will enable you to do more business, with more customers, more often, and more profitably.
In this book you'll find all of the techniques and tools you need to answer today's crucial go-to-market questions:
· Which markets offer the best opportunities for profitable growth?
· What do my target customers need? How can I do a lot more business with them?
· What mix of channels and partners will help me reach and sell to the most customers at the lowest possible cost?
· Do I have the right product or solution? How can I create broader customer interest in my offerings?
· Do I have a winning value proposition? What would make the 'message' more compelling - and drive more purchasing activity?
'Go To Market Strategy' is not about incremental change. As Friedman points out, it is for executives seeking nothing less than double-digit revenue growth and the slashing of at least 10-15 percent of selling costs - absolutely realistic results that go-to-market innovators have consistently achieved. This book lays out all of the techniques used by the world's top go-to-market leaders, so you too can achieve those kinds of results, and gain a real go-to-market competitive advantage in your markets.
New thinking from the author of 'The Channel Advantage'Offers ready made go-to-market strategic planning for any organizationPractical advice and a revolutionary strategic approach to creating and retaining customers using new technologies and new channel mixes for faster, more efficient routes to market.
Customer Reviews:
Great resource for entrpreneurs / small businesses.......2006-08-10
I strenuously disagree with the reviewer below who said this book is for big businesses rather than entrepreneurs. I'm an entrepreneur and this book has played an important role in my ability to build my business. A few years ago, a partner and I started a company and grew to 15 employees. We had a superb service to offer, but were not educated about how to sell it, and sales were leveling off. Stymied, we delved into atleast 20 books, seminars, and training events to learn how to "scale" our business. Honestly, nothing helped much. Then we found this book on Amazon. Go To Market Strategy helped us get organized, ask all the right questions, and put some simple ideas into use, to grow to 50 employees last month. After reading this book, we moved away somewhat from our "web fetish" and got much more serious about finding good partners, building our own small but effective sales group, and working with our customers to understand their needs and become more responsive. Many of the things we did came right out of this book. This book is *very* organized and systematic, breaking the sometimes overwhelming task of building a business into simple, proven tools which we were able to put to use. This book is also extremely well written, just lightyears ahead of the writing quality of other marketing books we bought. The author is very insightful and truly knows the ins and outs of "selling more stuff to more customers" as he puts it. I am sure this book is useful to Big Corporate America, but to me it's a wonderful resource for the small, struggling business.
Take your marketing to the next level!.......2006-05-07
Excellent marketing book by L. Freidman, who has written a few other good ones, too. Extremely interesting & helpful ideas, examples and tools for aligning your marketing strategies and your tactics with your customers. I see copies of this book floating around our and partners' offices all the time. Definitely worth reading and chewing on.
Very comprehensive and practical !!!.......2005-10-11
Author Friedman provides a very comprehensive picture of how to take products and services to market, in the most efficient and effective ways. This book is practical - it's more for sales management and marketing executives than for students and academicians. Going to market today is complex and risky, and difficult to figure out the right mix of people, channels (Internet, phone, mail, partners, etc). This book helps sort it all out in a well structured way. I highly recommend.
Very instructive for goers-to-market.......2005-09-08
Friedman gives the whole go-to-market strategy picture, explains the key points and relationships between different aspects of customer and market analysis, channel model construction, channel management etc. Can easily be used as a manual for actual go-to-market and channel development.
Misleading title draws wrong reader........2005-09-04
Friedman certainly seems to know what he's talking about. I wouldn't know since I ordered the book to learn about how to enter the market with a new product as a small entrepreneur. Friedman's advice is geared to the large corporation with large resources for research and marketing. He does not address the objectives stated in the title from the perspective and access to resources of the small business. For this type of reader the information may be interesting from a theoretical standpoint but I certainly found no practical advice to help my situation.
Book Description
With this book your students will learn step-by-step how to develop and implement a successful marketing strategy for health care facilities.
Book Description
Every company needs to figure out the best way to beat the competition. What do you do if the other guy is already dominating the market? Should you challenge them head on or lie low for a while? Should you offer customers high-end features or a low-end price? Or both?
During their years at Microsoft, John Zagula and Richard Tong answered such questions so effectively that they helped Microsoft Office and Windows grow from a 10 percent to 90 percent market share. As venture capitalists, Zagula and Tong have continued to test and perfect their system with hundreds of companies of all sizes and at all stages.
Now they're sharing their best ideas and methods in an easy-to-apply book that will be enormously helpful to marketers in every industry and leaders in every size company.
The Marketing Playbook explains the five basic strategies for a competitive market—The Drag Race Play, The Best of Both Play, The High-Low Play, The Platform Play, and The Stealth Play. It illustrates how each one works, how to pick the best one for a given situation, and then how to implement it effectively in the real world.
Just like a great sports coach with a well-designed playbook, managers who read this book will have the tools, tips, and tricks they need to leapfrog market research, craft a smart strategy, motivate their team, and start scoring major points with customers and against the opposition.
Customer Reviews:
An insult to your intelligence.......2006-01-24
Simply put, the book is claptrapped slung together by a couple VCs who can't work for Microsoft anymore. To help market this dung they convinced a bunch of cronies to submit good reviews on this site.
Caveat emptor.
Insightful!.......2005-08-24
While the metaphorical sports set-up is appealing, this "playbook" about marketing relies very little on the substance of sports and even less on the more powerful forces behind marketing. Instead, John Zagula and Richard Tong have written a clever grouping of five different marketing strategies, explained with sports metaphors. Real-life strategic examples and assessments of related risks and rewards accompany each play. Using some repetition to emphasize their lessons, the authors explain which market conditions call for using each of the five strategies. They demonstrate how forces in the market make some plays more feasible, although some of the illustrative stories seem a bit forced into fitting the marketing move under discussion and some examples lack sufficient detail to let the reader align the plays with precise goals and market conditions. However, the stories and strategies all have that insider flavor, right from the coach. We believe marketers who are still learning the ropes will want this strategic playbook.
Bad book, questionable reviews.......2005-07-23
First, this so-called playbook is a bunch of silly stories that have no current value. Example: the "drag race" tells how Microsoft sold word processing software in the 80s. Are you working for Microsoft and need advice? Do you think the market might have changed since then? Duuhhh.
Second, it is painfully obvious the authors salted the board here with positive reviews. I wouldn't be surprised if they wrote them under pen names. One of the authors posted a whine about being outed on these phony reviews, probably embarassed.
Third, if you are an entrepreneur seeking venture funding and pitch to the fund where these author's work, skim this book to preview the "expertise" they will be offering. Don't say you weren't warned.
A "must read" for most organizations.......2005-07-23
For those directly (or even indirectly) involved in their organization's marketing initiatives, what Zagula and Tong offer in this volume can be very helpful. They introduce and then rigorously examine what they call "five battle-tested plays for capturing and keeping the lead in any market." Use of "any" is an exaggeration because, of course, it is imperative to market whatever one offers only where potential is greatest for sufficiently profitable sales. Zagula and Tong duly note that "no matter what the play, if you're running it on the wrong field or with the wrong resources, it just won't work." In marketing as in thoroughbred racing, "there are courses for horses." Also, different situations require different "plays." Here are the five which Zagula and Tong offer for consideration:
The Drag Race: "In some circumstances, your best bet calls for singling out one competitor and putting the pedal to the metal racing against them to win."
Comment: Endorsed by Henry V, the Russian forces at Balaclava, and Crazy Horse and his Oglala Sioux warriors...but not by the French forces at Agincourt, Lord Cardigan and the Light Brigade, and the Seventh Cavalry under Lt. Col. George Armstrong Custer's command at the Little Big Horn.
The Platform Play: Once dominant, develop strategic alliances and strengthen position because "you never know from where a new challenger is likely to emerge."
Comment: Obviously, the strategy and tactics are almost wholly defensive. This allows time to consolidate, train, refresh, obtain and evaluate competitive intelligence, and in all other appropriate ways anticipate threats to dominance.
The Stealth Play: As you gather resources and complete preparations, whittle away at the incumbent's weak points. However, never forget that "big, dumb, slow companies can still squish you."
Comment: An excellent strategy for organizations with severely limited resources. Margins for error are razor-thin. The "big, dumb, slow companies" can afford to carpet bomb. Be a sniper. Carefully read Sun Tzu's The Art of War, especially the chapter on Estimates. Also Jason Jennings' Think Big, Act Small.
The The Best-of-Both Play: Rather than focus on compromises ("trade-offs") at both the high and low ends of the given market, gain dominance over the entire category "by collapsing these two ends. If you appeal to the most important needs of each segment of the market, you can win them all."
Comment: Huge "if" because, when attempting to appeal to all market segments, you could lose in competition for dominance in any one of them.
High-Low Play: Try to close out the competition by splitting the given category and thereby owning both. "This is the hardest play to manage, but if it's done right, you'll achieve high volumes and high margins at the same time."
Comment: An even greater "if."
Any summary such as this fails to establish for any one "play" the extensive context within which Zagula and Tong carefully explain the relative advantages and disadvantages of each. Hence the importance of the "Take-Aways" section which they provide at the end of the chapter which they devote to each of the five. Hence the importance, also, of Chapter 7 in which they discuss how to "shift gears" from one to another, Part II in which they help their reader to analyze the the "terrain" of her or his own competitive marketplace (i.e. mapping both perils and opportunities), and Part III in which they explain HOW to initiate and then sustain an appropriate play "as a killer campaign."
Of special interest and value to me is what Zagula and Tong have to say about "The Campaign Brief." It is thoroughly explained in Chapter 13. Here is a brief excerpt:
"First, your campaign brief will be a single document you'll follow for the campaign, so you'll need to cover pretty much everything.....You find the key points, the essence, of all the analysis, strategy, and guidance you've come up with so far -- and cram it all onto a single page. That's right, onto one single page....On the one page, you're going to put three core paragraphs that lay out the whole rationale for your strategy, each paragraph no longer than three sentences" which assert case, story, and positioning" followed by two paragraphs which specify key support followed by objectives, goals, and metrics. Zagula and Tong urge their reader to be able to complete the Three We's: We believe..., We will..., and We are....
No brief commentary such as this can possibly do full justice to the abundance of information and the wealth of insights as well as recommendations which Zagula and Tong's book provides. Suffice to say that it provides a cohesive, comprehensive, and cost-effective program which, for obvious reasons, must then be modified to accommodate the specific needs, interests, and resources of each reader's own organization.
A Yawner.......2005-04-27
The first 15 pages were OK. After that, it got boring fast. Borrow a copy, if you must.
Books:
- Brand From the Inside: Eight Essentials to Emotionally Connect Your Employees to Your Business
- Brand From the Inside: Eight Essentials to Emotionally Connect Your Employees to Your Business
- Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld
- Childrens Writers & Illustrators Market 2007 (Children's Writer's and Illustrator's Market)
- Cisco Networking Academy Program Fundamentals of Wireless LANs Companion Guide
- Clued In: How to Keep Customers Coming Back Again and Again
- Cold Calling Techniques: (That Really Work!) (Cold Calling Techniques)
- Command Performance: The Art of Delivering Quality Service (The Harvard Business Review Book)
- Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole
- Credit After Bankruptcy: A Step-By-Step Action Plan to Quick and Lasting Recovery after Personal Bankruptcy
Books Index
Books Home
Recommended Books
- Simple Church: Returning to God's Process for Making Disciples
- For Men Only: A Straightforward Guide to the Inner Lives of Women
- The Robert Shaw Reader
- The Strategy Process: Concepts, Context and Cases
- Applying UML and Patterns: An Introduction to Object-Oriented Analysis and Design and Iterative Deve
- Every Heart Restored: A Wife's Guide to Healing in the Wake of a Husband's Sexual Sin
- Dress Your Best: The Complete Guide to Finding the Style That's Right for Your Body
- Scorebuilder for Managerial Accounting
- Unintended Consequences: The Impact of Factor Endowments, Culture, and Politics on Long-Run Economic
- Young Scientists Explore Animal Friends
The Long Tail: Why the Future of Business is Selling Less of More
Good to Great: Why Some Companies Make the Leap... and Others Don't
The Tipping Point: How Little Things Can Make a Big Difference
The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials)
Seeing What's Next: Using Theories of Innovation to Predict Industry Change
