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How Companies Win: Profiting from Demand-Driven Business Models No Matter What Business You’re In Hardcover – October 12, 2010
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“A persuasive case that winning in today’s market requires an understanding that supply-driven business models of the past will not keep pace with fundamental changes in our global economy and its digitally enabled consumer.” (—Jack Welch, bestselling author of Winning)
“The rise of social networks has amplified the individual’s voice and this has sparked a revolution in demand. How Companies Win offers real-world solutions that you can implement right now to take advantage of these changes.” (—Sheryl Sandberg, COO, Facebook)
“With all of the options shoppers have today, it’s critically important to understand demand. It’s how you satisfy your customers better than your competitors. It’s the way companies will win.” (—Brian Cornell, President & CEO, Sam's Clubs)
“How Companies Win shows how to successfully manage in the future. Its fresh look at data and the case histories will stimulate the imagination of every business leader.” (—Mary Dillon, President & CEO, US Cellular)
“The authors’ discussion of Precision as the 5th P adds a powerful new tool for marketers. It aligns exactly with our strategy of precision marketing.” (—Joseph Tripodi, Chief Marketing and Commercial Officer, Coca-Cola Corporation)
“Calhoun and Kash have taken on the biggest business question of all: what it will take for companies to win in this new era of growing oversupply and heightened global competition. The conclusions they reach are eye-opening. ” (—Henry R. Kravis, Cofounder, Kohlberg Kravis Roberts)
“How Companies Win is a book about learning to understand demand. If you are relying on your customers to tell you what they want it’s too late.” (LeadershipNow.com)
From the Back Cover
For the past twenty years, the growth formula for business has been to increase revenues by expanding product offerings and streamlining supply. But with the recent global recession, the world economy has changed forever. Now the old tools—most notably supply-chain management—are no longer enough. In a new digital age characterized by over-supply and too many product types in almost every market, the new challenge is to locate and capture the elusive pools of high-profit demand.
Rick Kash and David Calhoun have the answer: a revolutionary, demand-driven model that has already proved successful for some of the world's most admired companies, including Best Buy, Anheuser-Busch, Hershey's, and Allstate. At the heart of this powerful new business model is an achievable vision for a new kind of winning company, one that uses sophisticated new tools and techniques to discover, characterize, and then serve these pools of high-profit demand—and in the process gain pricing power in that market. Kash and Calhoun show how to use everything from social networks to more revealing and effective consumer-research techniques and then introduce the demand chain, the logical new partner to your supply chain. The authors' principles, case histories, and insights will help your business run faster, cut costs, and become better able to deliver high-quality products and services, even in the tightest economic climate.
How Companies Win is a compelling call to action to engage every level within a company, small or large, local or global.
Top Customer Reviews
Just about every company's strategy is based on the idea that demand is greater than supply and all that they have to do is be better than the competition and the money will flow. Kash and Calhoun make a strong argument that the economy has shifted with more supply than demand. This simple shift changes the whole basis for enterprise strategy, marketing strategies, products and services. The impact of this change and how leaders are using this reality to their benefit is the subject of the book.
While the book is targeted primarily at Marketing Professionals, I recommend this book for executives looking to understand how to move forward and capture the markets that matter. Line executives will gain an understanding of the importance of addressing different market segments. Technology professionals will appreciate the role that information plays in defining the demand driven enterprise. Others will find the author's arguments providing an interesting view on what is going on in a world where traditional notions of strategy and competitive advantage are under threat.
The book is clear and comprehensive. The authors describe the process for creating a demand driven strategy and plans work. The results they achieve and sample deliverables.Read more ›
How Companies Win simultaneously manages to introduce a macro-level pivot in how businesses should think while serving as a tactical how-to guide for implementing that thinking. So often "strategy" books fail at one of those: either giving us a new lens with which to see the world (but no tools to act on it) or new tools to act in the world (but no understanding of why those tools are paramount). How Companies Win gives us both.
The pro and con of this book is that it covers so many aspects of winning. Everything is grounded in the same fundamental new truth - that winning today requires a disciplined understanding and segmentation of demand - but Kash and Calhoun show us how that principle should impact decisions across a business. That is to say, this is not a book about how marketing wins or how product wins or how sales wins, it's a book about how companies win. For some, that enterprise breadth may make this a challenging read, but for those who have the ability and the will to impact their business' winnability holistically, this book will resonate.
And that doesn't have to be a big business, really. One of the most compelling things about How Companies Win is that the authors' frameworks should apply as easily to my neighborhood's dry-cleaning shop as a major retailer. Kash and Calhoun default to big, household-name case studies, but a small business owner has just as much reason to pick up this book and start identifying their most profitable sources of demand. In many ways, it might even be easier to use this book's tools at the entrepreneurial level. (See: Kash's anecdote of selling shoes in college).Read more ›
Here is the key concept.
In a world where it is really easy to learn how to create anything, companies (you) have a huge amount of competition. Given that, supply is essentially infinite. When supply outstrips demand, price goes to crap.
But traditional marketing is about creating demand. Well, when supply outstrips demand, that is a loosing game.
Instead of trying to create demand, what if marketing looked into your customer base (or target market) to identify a sub-set of demand. A smaller set of customers who loved your product just the way it was - including the higher price? In that market, you would be the king. That is, if you can find "Demand-Pools" (markets where your product was the superior in the minds of that group of buyers) you could command higher price and/or more sales. Why? Because your product is already configured the way that group wants to buy.
The book looks at All-BEEF Hotdogs. It turns out that two groups love all-beef hotdogs. Mothers with teenage sons (also known as eating machines) and Hotdog lovers.
Mothers see beef as better than pork (healthier). So they will pay a premium.
People who love hotdogs BOIL them never GRILL them because grilling takes flavor away where as boiling retains the hotdog's flavor. Again, people who love hotdogs will pay a premium for better tasting hotdogs. And the all-beef franks fit that bill.
In both cases the marketer's job is NOT to stimulate demand, but to FIND these markets where people are willing to pay more for all-beef franks.
The hotdog manufacture can still complete in the Summer-Grilling market.Read more ›
Most Recent Customer Reviews
Dont know whether it's been a long while between the time it got published and when I read it, the key theme in the book* has become quite common sense when even the biggest... Read morePublished 9 months ago by ServantofGod
How Companies win is certainly not in the top 20 business books that I've read this year. Might be a better read for someone who is early on their own personal journey but if... Read morePublished 16 months ago by GregP
Insightful, multiple case studies, provides a repeatable framework. Interesting and varied examples of application. Applies to multiple industries and economic cycles.Published 17 months ago by Kathryn V. Marinello
Both authors master the science of demand and show you with a simple language and nice examples how to manage your company to benefit from costumers satisfaction. Read morePublished on December 23, 2013 by Luiz Gabriel Santos
Great book. About 1/2 wat through it. Having a chance to see how big business solve there problems and see that even a mega company like McDonalds can have problems and see how... Read morePublished on June 9, 2013 by Sedrick L. Emery
very good benefit/price ratio excellent deal good product.Excellent book just what I expected, so far very happy with my purchase.Published on March 28, 2013 by Homero Murzi
Companies have spent millions of dollars wringing every last drop of savings out of their supply chains. This is a good thing. Read morePublished on June 28, 2011 by Nick McCormick
The concept of supply and demand has a venerable history. Scottish social philosopher Adam Smith used the phrase in "An Inquiry into the Nature and Causes of the Wealth of... Read morePublished on April 20, 2011 by Rolf Dobelli
This book is very pertinent to businesses and what we need to do to adopt to our changing world. The world indeed has become an economy of oversupply and we need to get better at... Read morePublished on February 22, 2011 by Paul