Page numbers refer to the print edition but are hyperlinked to the appropriate location in the e-book.
Page references indicated by italicized page references indicate figures and tables. Page references followed by n indicate notes.
acrylate copolymer microspheres (ACM), 208
airline industry: American Airlines, 166–68, 167, 260, 324n9; Blue Ocean strategies and, 257–62, 259, 325n30; category norms, 201; Delta Airlines, 133–34, 167, 260–62, 324n9; dogfight, 40–42, 42, 50–51, 52; external alignment and, 109; hidden fees of, 311n15; legacy carriers, 44, 238–39, 259, 324n9; regional jet sector, 274; Spirit Airlines, 51, 52, 110, 167, 201, 320n23; Twitter activity of, 167. See also JetBlue; Southwest Airlines
Amazon, 13, 93, 98, 144, 326n48; Bezos leading, 63–64, 66–67, 284–85, 287–88, 305n11, 328n9; corporate mission of, 284–86; customer satisfaction with, 291; MSV and, 63–67, 65; North Star of, 66–67; personalized services of, 158; pricing, 325n20; product complexity of, 180; purpose and, 63–67, 65; stock buybacks by, 306n27; stubbornness vs. flexibility at, 287–88
Apple: augmentation trends defied by, 199; Cook leading, 7–8, 284; corporate mission of, 284; customer satisfaction with, 291; electric car, 91; enterprise IT solutions by, 90–91; gaming and, 89; home entertainment and, 89; IBM’s partnership with, 90–91; internal alignment of, 111–12; iTunes, 90, 98, 99, 250, 263, 325n20; Jobs leading, 7–8, 26–27, 89, 126–27, 210, 249–50, 313n9; Law of Competition and, 87, 91–95, 92, 95; Law of Competitive Advantage and, 98, 98; Law of Large Numbers and, 87–91, 89, 99; as leader, 128; long-term profitable growth by, 82, 86–95, 92, 95, 98, 98–99, 286, 326n48; mobile wellness and health-care solutions by, 90; Pay, 90, 94–95; product life cycles of, 98, 98, 195–96; retail services, 90; shrink-to-grow strategy of, 126–27; smartphones, 12, 147–48, 195–96, 319n17, 326n48; strong brand of, 142–43, 144, 147–48; Watch, 88, 94, 95, 202, 309n26
Australian Trade Commission, 33
automotive industry, 69, 86, 91; BMW, 112–14, 121–22, 142, 274; Ford, 155–57, 220; Honda, 227–34, 230–32; Jeep, 177; luxury, 274; Mercedes-Benz, 121–22, 274; Subaru, 312n5; Tesla, 274; Toyota, 25, 234, 277; USAA and, 163; Volkswagen, 283–84. See also Audi; General Motors
beer industry: Coors, 105–7, 107, 109, 128, 175, 311n12; Guinness, 175–76, 194, 194; MDS analysis of, 194, 194; PBR, 150–51; perceptual mapping of, 188–92, 189, 191–92, 194, 194, 319n9. See also Miller Brewing Company
Beyond the Core (Zook and Allen), 22
big bang disruptive technology, 26, 249, 272, 273; characteristics of, 13; product life cycle shortened by, 310n36; value proposition of, 13–14
Big Hairy Audacious Goals (BHAGs), 6, 9
Blue Ocean strategies: airline industry and, 257–62, 259, 325n30; breakout positioning and, 279–80; characteristics, 253; of Cirque du Soleil, 254–55, 255; of Curves, 256, 256–57, 258–59, 263, 263, 325n29; disruptive technology and, 279–80; focus in, 260; four-actions framework and, 254–55, 255, 259; introduction to, 17–18, 252–53; meaningful differentiation in, 257, 260–62; Red Ocean and, 17–18, 253, 253–55, 260, 262, 263; Six-Paths framework, 262–65, 263; Southwest Airlines and, 259, 260–61
Blue Ocean Strategy (Kim and Mauborgne), 17, 252
Boston Consulting Group (BCG), 2–4, 3, 59
brand: affinity, 139–42, 140; attributes, desired and delivered, 155, 156; category fit, 176–77; equity, 144, 154, 168, 182, 290–92, 291, 295; identity, 24–25, 229; leverage, 176–77; meaning of, 140–52, 144–45, 148, 152–53; personality, 37, 40; strategy, 139, 152–54, 154. See also strong brands
brand killers: broken promises, 168–74, 169, 171; dissonant product-line extensions, 174–77; excessive product complexity, 177–82
brand promise: broken, 168–74, 169, 171; GM’s, 168–72, 169, 171, 316n22; Harley-Davidson’s, 161, 162; JCPenney’s, 173–74; meaningful differentiation and, 147; of strong brands, 140–43, 144–45, 290
breakaway positioning: as breakout positioning strategy, 244–52, 245, 247, 251; examples, 250–52, 251; Procter & Gamble and, 250–52, 251; by Swatch, 244–50, 245, 247
breakout positioning: Blue Ocean strategies and, 279–80; breakaway, 244–52, 245, 247, 251; disruptive technology and, 279–80, 323n2; in dogfight, 252; meaningful differentiation and, 204, 204–5; reverse positioning, 237–39, 237–44, 242–44, 252; stealth positioning, 323n5; strategy of, 204, 204–5, 236–52, 237–39, 243–45, 247, 251, 265
breakthrough ideas: consumer feedback on, 211–17, 212, 215; market research and, 210–17, 212, 215, 218, 221, 223; measuring cup, 210–15, 212, 215, 219, 321nn14–16; origin of, 206–11; pain points fixed by, 206, 212–14
Built to Last (Collins), 5
bureaucratic constraints, on business strategy, 118
business alignment: executive management in, 20–25, 23; finance in, 19–20; human resources in, 20; modern business strategy thinking and, 19–27, 23, 28; sales in, 19; of Southwest Airlines, 43, 51; as strategic imperative, x, 27, 28, 38, 39, 97, 153, 154, 282, 289, 293; of Yellow Tail Wine, 38–40, 39
business outcomes, bull’s-eye and, 292–96, 295
business performance measures, in perceptual mapping, 319n14
business strategy: all-in support for, 128, 132–33; Audi’s, 120–32; brand strategy, 139, 152–54, 154; breakout positioning framework, 204, 204–5, 236–52, 237–39, 243–45, 247, 251, 265; bureaucratic constraints on, 118; CEO owning, 127, 130–31; checklist, 279–80; clarity of, 100–103, 105–7, 107, 119; cognitive biases in, 117; components of, 311n11; as context sensitive, ix, 6, 8–9, 127–30, 128; Coors Brewing Company’s, 105–7, 107; corporate culture influencing, 117–18; corporate mission guides strategy formulation in, 74, 74–75; courage in leading, 128, 131–32; customer-driven, 24–26; disruptive technology framework, 266–80, 267, 272, 278; dynamic, ix, 114–16; effective formulation of, 108, 108–18, 111–12; external alignment in, 109–10, 111, 112–13; fixing, 134–38, 136–37; flaws, 119; ineffective governance and, 118; inertia in, 115–18; inside-out, 24, 26; internal alignment, 110–14, 111–12; management hierarchy and, 103–4, 104; many-to-many, 156–57; objectives, 111; one-to-many, 156; outside-in, 24–26, 135; personal choices in, 135–38, 137; product-strategy tips, 195–200, 196, 198; rigidity of, 9; short-term risk aversion and, 116–17; shrink-to-grow, 126–27; strong brands and, 139, 152–54, 154; value in, 108, 108–12, 111. See also Blue Ocean strategies; modern business strategy thinking; strategic imperatives, for long-term profitable growth
buyer group, in Six-Paths framework, 263, 263–64
“Can You Say What Your Strategy Is?” (Collis and Rukstad), 105
Casella Family Brands (CFB): Carramar Estate, 34, 34–35; category image and, 204; as cat in dogfight, 29; DFWS and, 33–35, 39, 49–50; facilities, 30; long-term profitable growth of, 28–29, 38–40, 39, 49–50; Six-Paths framework and, 263; U.S. market entry of, 33–35, 34. See also Yellow Tail Wine
“cash cow” quadrant, of growth–share matrix, 2, 3
chief executive officers (CEOs): all-in support by, 132–33; best performing, 286, 328n13; business strategy owned by, 127, 130–31; compensation of, 20–21, 61–62; corporate mission and, 283–86; courage of, 131–32; exceptional, 99; executive management and, 20–21; pressure on, 81
Christensen, Clayton: on arms race, 96; disruptive technology framework of, 9–12, 11, 26, 236, 266–70, 299nn23–25, 323n2; The Innovator’s Dilemma, 9–11, 11, 266, 299n25; The Innovator’s Solution, 299n25; MSV and, 304n9; Seeing What’s Next, 299n25; Thinkers50 award for, 299n26; on weakening capabilities, 61
commercialization phase, of product development, 218, 218
communities, profitable growth helping, 81
Competing for the Future (Prahalad and Hamel), 21
competition: changed basis of, 235; dynamics, product positioning and, 195–96, 196; in hot industries, 48–49; Law of, 87, 91–95, 92, 95, 289; pressure of, 268; product positioning and, 195–96, 196; structuralist view of, 2–3
compound annual growth rate (CAGR), 82, 83, 88
consumer: choice paradox and, 180, 317n45; empathy for, 210; feedback, 211–17, 212, 215; pain points identified by, 212–14; perceptions, meaningful differentiation and, 183–86, 185–86; product augmentation promoted by, 200; profitable growth helping, 81; reverse positioning targeting, 324n16; surplus, 108, 108. See also market research
continuous innovation: barriers to, 96–97; by JetBlue, 324n10; in modern business strategy thinking, 9–15, 11, 13, 19–21, 27, 28; skills underlying, 210; by Southwest Airlines, 45; as strategic imperative, x, 27, 28, 38, 52, 97, 101–2, 128, 133–34, 153, 154, 282, 289, 293; by Yellow Tail Wine, 38. See also breakthrough ideas
corporate mission: of Amazon, 284–86; of Apple, 284; CEOs and, 283–86; of Costco, 292–93; of FedEx, 286; guides, 74, 74–75; lip service to, 285–86; in management best practices, 282–86, 292–93; of Starbucks, 284, 286. See also North Star
Costco: brand equity, 295; corporate mission of, 292–93; customer satisfaction with, 291; as leader, 128; long-term profitable growth of, 292–96, 295; strategic imperatives and, 293–94; Target compared with, 294, 295; Walmart compared with, 294, 295
creative problem-solving ability, 210
customer-driven strategy, 24–26
customers: brand builders and, 155–68, 156, 161–62, 167; in business purpose, 63–75; communities of, 159–64, 161–62; dialogue with, 164–68, 167; focus on, disruptive technology and, 274; mutual trust in, 140, 143–48, 148, 290; satisfaction of, 65, 101, 109, 135–37, 136, 166, 290–92, 291, 303n16, 307n43, 310n3; strong brands connecting with, 139–40, 140; symbolic identity of, 140, 149–52, 152; value proposition and, 256, 256–57
Customers Included: How to Transform Products, Companies, and the World—With a Single Step (Hurst), 222
data collection, for product positioning, 185–86, 186
David and Goliath: Underdogs, Misfits and the Art of Battling Giants (Gladwell), 85, 290
diminishing marginal utility, 197
disruptive technology, 326n48; barriers to, 274–79, 278; Blue Ocean strategies and, 279–80; breakout positioning and, 279–80, 323n2; as business strategy, 266–80, 267, 272, 278; Christensen on, 9–12, 11, 26, 236, 266–70, 299nn23–25, 323n2; competitor focus and, 274; creative destruction and, 11, 95, 299n24; customer focus and, 274; definition of, 266; dysfunctional management mindsets and, 276–79, 278; feature–function arms race and, 11, 96, 144, 197, 271, 274; high-end, 12–13, 13, 267, 267–68; low-end, 11, 13, 267, 267–71, 275; in modern business strategy thinking, 9–15, 11, 13, 26; organizational barriers to, 275–76; in PC industry, 267, 267–70; resource constraints on, 274–75. See also big bang disruptive technology
dissonant product-line extensions, 174–77
dogfight: airline industry, 40–42, 42, 50–51, 52; breakout positioning in, 252; cat in, x, 18, 29, 43, 49, 183, 199, 204; introduction to, ix–x; PC industry, 199; strategic imperatives and, x; wine industry, 29, 32
dogfight mentality, in U.S. wine industry, 29, 32
“dog” quadrant, of growth–share matrix, 2, 3, 4
dysfunctional management mindsets: burden of proof, 278, 278–79; complacency, 277–78; disruptive technology and, 276–79, 278; overconfidence, 279; pride in current product technologies, 276–77
early-stage market sizing, 322n37
earnings-per-share (EPS), 58
eight pillars of management effectiveness, 5
emissions scandal, VW, 284
empathy, for consumer, 210
employees, profitable growth helping, 81
End of Competitive Advantage, The: How to Keep Your Strategy Moving as Fast as Your Business (McGrath), 14–15, 115
enterprise IT solutions, 90–91
excessive product complexity, 177–82
Execution: The Discipline of Getting Things Done (Charan and Bossidy), 25
failure, as teacher, viii
finance, in business alignment, 19–20
flexibility, stubbornness vs., 287–88
General Motors (GM), 86, 126, 156, 285; broken brand promise of, 168–72, 169, 171, 316n22; Buick, 169, 169–70, 171; Cadillac, 169, 169, 171–72, 176; Chevrolet, 69, 168, 169, 170, 171; as laggard, 128; meaningful differentiation by, 170; Oldsmobile, 169, 169–70, 171, 172, 316n22; Pontiac, 69, 168, 169, 170, 171, 172, 316n22; Saturn, 203
Gladwell, Malcolm, 85, 290
Goizueta, Roberto, 54, 146
Good to Great (Collins), 5
governance, ineffective, 118
GPS navigation devices, 14
Great by Choice (Collins), 5
growth–share matrix, 2–4, 3
Harley-Davidson: brand promise of, 161, 162; community-based marketing by, 160–63, 161–62; dissonant product-line extension of, 175, 177
Harley Owners Group (H.O.G.), 160, 162
high-end players, reverse positioning and, 237, 237–38
holy grail, of long-term profitable growth, 154, 281, 296
hotel industry: Airbnb and, 209, 236, 252–53, 263; bed wars in, 270; budget hotels, 239–41; business-oriented, 239–41, 324n12; category norms, 200–201; citizenM in, 241–44, 242–43, 263; customer satisfaction in, 291; high-end, 239–40
hot industries, competition in, 48–49
How Competitive Forces Shape Strategy (Porter), 1, 2
human resources, in business alignment, 20
industry: “bad,” 1, 41, 45–47, 52; followers, 128, 129–30; “good,” 1, 47; hot, 48–49; leaders, 128, 129; in Six-Paths framework, 262–63, 263; top-performing, 47–48, 48
innovation phase, of product development, 218, 218
Innovator’s Solution, The (Christensen and Raynor), 299n25
In Search of Excellence (Peters and Waterman), 4–5, 298n7
inside-out strategies, 24, 26
inspiration phase, of product development, 218, 218
international competitiveness, 61
JetBlue, 51, 52, 78–79; continuous innovation by, 324n10; customer satisfaction with, 291, 291–92; external alignment of, 109–10; long-term profitable growth of, 292; operating income as percentage of revenue, 110; reverse positioning of, 238–39, 238–39; social media, 164–66, 167
job preferences, of MBA graduates, 48, 303n23
job seeker, as cat in dogfight, 48–49
Johnson, Robert Wood, II, 67–68
long-term profitable growth: at Apple, 82, 86–95, 92, 95, 98, 98–99, 286, 326n48; of CFB, 28–29, 38–40, 39, 49–50; communities helped by, 81; companies sustaining, viii, 82–87, 83–84; consumers helped by, 81; of Costco, 292–96, 295; difficulty of, viii–ix, 85–87, 281, 289–90; employees helped by, 81; executives helped by, 81; exemplars, 88–89, 89; as holy grail, 154, 281, 296; of JetBlue, 292; Law of Competition and, 87, 91–95, 92, 95, 289; Law of Competitive Advantage and, 87, 95–98, 96–98, 289; Law of Large Numbers and, 87–91, 89, 99, 289; management best practices for, 281–96, 282; modern business strategy thinking and, 1, 19, 26–28, 28; North Star and, 286; patience for, 288; pressure for, 79–81, 80; product life cycle and, 95–99, 96–98, 281; projected, viii; ranking of companies with, 285–86; of Southwest Airlines, 28, 50–52, 52; suppliers helped by, 81. See also bull’s-eye, of long-term profitable growth; strategic imperatives, for long-term profitable growth
low-end players, reverse positioning and, 237, 237–38
Lumber Liquidators, 69–70
luxury automotive market, 274
Machine That Changed the World, The (Womack and Jones), 25
management: challenges, of Curves, 325n29; effectiveness, eight pillars of, 5; executive, in business alignment, 20–25, 23; hierarchy, 103–4, 104; incentives, inappropriate, 61–62. See also dysfunctional management mindsets
management best practices: Bezos and, 284–85, 287–88; brand equity, 290–92, 291, 295; Collins on, 5–6; context-sensitive strategy and, 6, 8–9; corporate mission, 282–86, 292–93; eight pillars of, 5; halo effect and, 6–8, 298nn10–11; for long-term profitable growth, 281–96, 282; search for, 4–9; strategic imperatives in, 288–90, 293–94; stubbornness vs. flexibility, 287–88
many-to-many product strategy, 156–57
market: expansion of, 235; expected size of, 322n37; luxury automotive, 274; overshot, 269–70; segment, in Six-Paths framework, 263, 263; structuralist view of, 2–3; valuation, 306n27, 307n1
market research: behavioral observation, 214–15, 218–20, 321n21; breakthrough ideas and, 210–27, 212, 215, 218, 221, 223; on customer satisfaction, 310n3; exploratory conversation, 220–24, 221, 223, 321n21; focus groups, 211–12, 218, 223–25; Honda Element, 227–34, 230–32; how and when to use, 217–27, 218, 221, 223; on millennials, 228–30, 230, 233–34; in natural habitat, 220, 230; for product positioning, 183–84; quantitative surveys and analytics, 215–17, 225–27; on wine, 302n2
maximizing shareholder value (MSV): Amazon and, 63–67, 65; as business purpose, 53–62; buybacks and, 57–59, 58, 61–62, 305n16, 305n18; capital allocation and, 57–61, 58–60; Christensen and, 304n9; dissenting views on, 56–62; IBM and, 59–60, 59–62; impasse of, resolved, 63–66, 65; inappropriate management incentives and, 61–62; international competitiveness and, 61; origin of, 54–56; primacy of, 53; weakening capabilities and, 61; Welch and, 54–56
MBA graduates, job preferences of, 48, 303n23
meaningful differentiation: in Blue Ocean strategies, 257, 260–62; brand promise and, 147; breakout positioning and, 204, 204–5; consumer perceptions and, 183–86, 185–86; essence of, 204, 204–5; by GM, 170; industry rules defied in, 200–204, 201, 203; modern business strategy thinking and, 15–19, 17–18, 27, 28; product positioning and, 183–94, 185–87, 189, 191–94; product-strategy tips for, 195–200, 196, 198; of Southwest Airlines, 260–61; as strategic imperative, x, 27, 28, 38–39, 97, 128, 131, 153, 154, 282, 289, 293; success stories, 18; by Swatch, 202; by Yellow Tail Wine, 38–39, 302n10
mobile wellness and health-care solutions, 90
modern business strategy thinking: business alignment in, 19–27, 23, 28; capabilities-driven, 21–24, 23, 26–27; context of, ix, 6, 8–9; continuous innovation and, 9–15, 11, 13, 19–21, 27, 28; customer-driven, 24–25; disruptive technology in, 9–15, 11, 13, 26; Five Forces framework, 1, 2, 4, 40–41; growth–share matrix, 2–4, 3; influences of, vii; inside-out, 24, 26; long-term profitable growth and, 1, 19, 26–28, 28; management best practices and, 4–9; meaningful differentiation and, 15–19, 17–18, 27, 28; operational excellence in, 25–26; outside-in, 24–26, 135
new business, success rate of, 23
newspaper industry, 24, 277
nonconsumers, attracting, 205
North Star, 74, 74–75, 100, 118; of Amazon, 66–67; of IKEA, 70–71; of J&J, 67–69; lip service to, 285–86; long-term profitable growth and, 286; safety crises and, 68–70; of Starbucks, 71–73
one-to-many product strategy, 156
operating income, as percentage of revenue, 110
operational excellence, 25–26
organizational barriers, to disruptive technology, 275–76
Pabst Blue Ribbon (PBR) beer, 150–51
“pains and gains” questions, 212
Paradox of Choice, The (Schwartz), 180
payments, with Apple Pay, 90, 94–95
PC (personal computer) industry: augmentation in, 197–99; disruptive technology in, 267, 267–70; dogfight in, 199; netbooks in, 199, 269–70; sustaining technologies and, 299n23; value chain, 112
perceptual mapping: beer industry, 188–92, 189, 191–92, 194, 194, 319n9; business performance measures added to, 319n14; factor analysis in, 318n7; MDS, 192–94, 193–94; multivariate, 188–92, 189, 191–92, 318n8, 319n10; for product positioning, 184–95, 185–86, 189, 191–94; theme parks, 192–94, 193; of two attributes, 184–86, 185–86; women’s clothing retailers, 185–87, 185–87
personalization: as brand builder, 155–59; product configuration, 159; product-line extensions, 157–58; of services, 158
pharmaceutical industry, 264
platform engineering, 170
price/performance trade-offs, 201
pride, in current product technologies, 276–77
Procter & Gamble: breakaway positioning and, 250–52, 251; Mr. Clean, 206, 251, 251; Pampers, 159–60, 250; Swiffer, 206, 212, 251, 251–52, 325n20; Tide, 175, 206
product: augmentation, 196–200, 198; breakout, 235–36, 236; complexity, excessive, 177–82; configuration, personalized, 159; current, pride in, 276–77; development phases, 218, 218; in 4Ps, 184, 246–47; launches, failure rates of, 227, 309n34; many-to-many strategy, 156–57; new uses of, 268; one-to-many strategy, 156; subjective attributes of, 183–84; Swatch, 246–47; tangible attributes of, 183
product-line extensions: dissonant, 174–77; failure rate of, 316n29; personalized, 157–58; pressure to add, 179
product positioning: competition and, 195–96, 196; competitive dynamics in, 195–96, 196; data collection for, 185–86, 186; of JCPenney, 184–86, 185–87; market research for, 183–84; meaningful differentiation and, 183–94, 185–87, 189, 191–94; perceptual mapping for, 184–95, 185–86, 189, 191–94; principles of, 183–85; product-strategy tips for, 195–200, 196, 198; of women’s clothing retailers, 184–87, 185–87. See also breakout positioning
Profit from the Core (Zook and Allen), 22
rail ticketing kiosk, exploratory conversation about, 220–21, 221, 223, 224
Red Ocean: Blue Ocean and, 17–18, 253, 253–55, 260, 262, 263; characteristics, 253; inevitability of, 280; overshot market and, 270; Six-Paths framework and, 263
retail services, Apple’s, 90
revealed preference analysis, 318n5
reverse positioning: as breakout positioning, 237–39, 237–44, 242–44, 252; citizenM, 241–44, 242–43; consumers targeted by, 324n16; examples, 244; JetBlue, 238–39, 238–39
risk aversion, short-term, 116–17
Rule of Eighteen Months, 300n40
sales, in business alignment, 19
S&P 500 stock market index, 60, 61, 83
Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change (Christensen, Anthony, and Roth), 299n25
short-term risk aversion, 116–17
shrink-to-grow strategy, 126–27
situational assessment, Audi, 122–23
Six-Paths framework: for Blue Ocean strategies, 262–65, 263; buyer group in, 263, 263–64; category image in, 263, 265; CFB and, 263; industry in, 262–63, 263; market segment in, 263, 263; Red Ocean mindset and, 263; scope in, 263, 264–65; Southwest Airlines and, 263; Swatch and, 263, 265; time and place in, 263, 265
smartphones, 133; Apple, 12, 147–48, 195–96, 319n17, 326n48; Samsung, 142–43, 144, 147, 148, 319n17
social media: American Airlines, 166–68, 167; Facebook, 167–68; GoPro, 163–64; JetBlue, 164–66, 167; Twitter, 102, 165–67, 167, 310n9; as two-edged sword, 168
“Social Responsibility of Business Is to Increase Its Profits, The” (Friedman, M.), 54
Société de Microélectronique et d’Horlogerie (SMH), 245–46
Southwest Airlines: Blue Ocean strategies and, 259, 260–61; business alignment of, 43, 51; continuous innovation by, 45; convenience of, 44; focus of, 260; future of, 49–52, 52; generalized results of, 45–48, 46–47; internal alignment of, 112–13; long-term profitable growth of, 28, 50–52, 52; lower fares of, 43–44; meaningful differentiation of, 260–61; operating costs, 52, 304n29; operating income as percentage of revenue, 110; pleasant flights of, 44–45; satisfaction with, 303n16; Six-Paths framework and, 263; on Twitter, 167
stakeholders: priorities of, 63; value for, 54, 62–63, 68–69, 74, 74–76, 81, 282, 285, 292, 296
“star” quadrant, of growth–share matrix, 2, 3
stealth positioning, 323n5
strategic imperatives, for long-term profitable growth: brand equity and, 290; brand strategy and, 152–54, 154; bull’s-eye and, 282, 282; business alignment, x, 27, 28, 38, 39, 97, 153, 154, 282, 289, 293; continuous innovation, x, 27, 28, 38, 52, 97, 101–2, 128, 133–34, 153, 154, 282, 289, 293; Costco and, 293–94; dogfight and, x; in management best practices, 288–90, 293–94; meaningful differentiation, x, 27, 28, 38–39, 97, 128, 131, 153, 154, 282, 289, 293; overview of, 26–28
Strategy from the Outside In (Day and Moorman), 24
strong brands: Apple, 142–43, 144, 147–48; business strategy and, 139, 152–54, 154; Coca-Cola, 144, 144–47; customer connection with, 139–40, 140; Dove, 151–52, 152–53; leverage of, 177; mutual trust in, 140, 143–48, 148; PBR, 150–51; product-line extensions of, 174–75; promise of, 140–43, 144–45, 290; symbolic identity and, 140, 149–52, 152–53, 290
structuralist view, of markets and competition, 2–3
stubbornness, flexibility vs., 287–88
subjective product attributes, 183–84
suppliers, profitable growth helping, 81
Swatch: all-in support at, 132–33; breakaway positioning by, 244–50, 245, 247; category image and, 265; designs, 246, 247; Hayek leading, 132–33, 245–46, 248–50, 325n20; meaningful differentiation by, 202; place of, 249–50; price, 248, 250, 325n20; product of, 246–47; promotion, 247–48; Six-Paths framework and, 263, 265
tangible product attributes, 183
“Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure” (Jensen and Meckling), 54
time, in Six-Paths framework, 263, 265
top-performing industries, over decades, 47–48, 48
total shareholder return (TSR), 46, 46, 76
ultrasound equipment, 275
United Services Automobile Association (USAA), 163
Universal theme park, 193, 193
Unsafe at Any Speed (Nader), 69
value: in business strategy, 108, 108–12, 111; chains, 112, 235, 264; proposition, 13–14, 256, 256–57; for stakeholders, 54, 62–63, 68–69, 74, 74–76, 81, 282, 285, 292, 296. See also shareholder value
weighted average cost of capital (WACC), 77
Well-Designed: How to Use Empathy to Create Products People Love (Kolko), 222
“white space” opportunity, 184
willingness to pay (WTP), 108, 108
wine industry, U.S.: Barefoot Cellars, 49, 50, 303n25; casual consumption and, 302n10; category image and, 204, 265, 320n28; CFB entering, 33–35, 34; dogfight mentality in, 29, 32; E. & J. Gallo Winery, 49, 303n25; market research on, 302n2; norms, 29–32, 31, 35–36; sparkling wine, 204. See also Yellow Tail Wine
Yellow Tail Wine: Barefoot Cellars and, 49, 50, 303n25; birth of, 35–38; brand personality of, 37, 40; business alignment of, 38–40, 39; category image and, 204, 265, 320n28; continuous innovation by, 38; future of, 49–51, 50–51; generalized results of, 45–48, 46–47; label, 34, 36–38; meaningful differentiation of, 38–39, 302n10; success of, 29, 37–40, 39, 49–51, 50–51