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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.
From the Trade Paperback edition.
- Sales Rank: #405233 in eBooks
- Published on: 2007-12-18
- Released on: 2007-12-18
- Format: Kindle eBook
Amazon.com Review
For years, the prevailing wisdom in business was that profitability was a byproduct of market share; get the biggest piece of the market and profit will surely follow. But in the last 10 years, this formula has time and again proved itself wrong. Companies such as DEC, GM, Ford, United Airlines, Kodak, and Sears have all demonstrated that market share does not necessarily lead to profitability.
The Profit Zone looks at how profit happens in today's customer-driven economy. The authors demonstrate why market share often leads to a "no-profit zone" and identify 22 profit models that have helped dozens of companies consistently make money. Included are in-depth looks at companies--Disney, GE, Microsoft, Intel, Charles Schwab--that have successfully redesigned their businesses and dramatically increased the value of their companies. Instead of focusing on market share, these innovators first looked at their customers' needs and how they could profit from fulfilling them. The book considers example after example of how the profit zone works, from Disney's theme parks to Schwab's marketing and selling of mutual funds. The final chapter is a handbook that allows managers to apply the ideas to their own companies. Clearly written and immensely practical, The Profit Zone deserves a place on every manager's bookshelf.
From Library Journal
Slywotsky (Value Migration, McGraw-Hill, 1995) and Morrison, partners in a management consultancy, offer a number of insights into corporate strategy, presenting a theoretical framework that crosses a number of enterprise sectors and employs a number of specific strategies. The authors point out that market share, once the sine qua non, can no longer be equated with profitability. For the authors, profitability today comes when organizations move from a value chain based on core competencies to one based on consumer priorities. This work has a textbooklike feel; besides defining 22 specific profit models, it details how a number of successful companies from SMH (Swatch and Omega watches) to Coca-Cola and Microsoft employ strategies either singularly or in multiples. If this book has a drawback, it is that the authors were unable to capture fully the pain and hard work that came about in the development and execution of a strategy. Definitely worth considering for business collections and a good choice for general collections.?Steven Silkunas, SEPTA, Philadelphia
Copyright 1998 Reed Business Information, Inc.
Review
"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."
--Phillip Kotler, Kellogg School, Northwestern University
"This important and meaningful book is must reading for anyone responsible for business strategy formulation. Slywotzky and Morrison's strategic approach is woven through a range of real-world examples that reinforce the power of creative business design and ongoing reinvention."
--Richard L. Keyser, chairman and CEO, W.W. Grainger, Inc.
"[The authors] show how to achieve profitable results by developing superior insight into customers and adapting a company's business design to stay ahead of customer needs, rather than attempting to do more of what you've always done faster and better. The Profit Zone gives the reader confidence that these ideas work through clear and detailed examples."
--Samuel J. Palmisano, general manager of IBM Personal Computer Company
From the Hardcover edition.
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