He focuses on identifying business model patterns and learning when to apply each type. In this book, he looks at the way that value migrates between companies as markets grow, stabilize, and decline. It is widely acknowledged that products go through cycles, from growth through obsolescence. It is not as well recognized that business designs also go through cycles and reach economic obsolescence.

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Curt: Small businesses can generate demand just as well as large businesses, correct? Some of these small businesses grow up to be niche businesses and some grow up to be giants.

But it all begins with figuring out how the customer and the circumstances are changing. In fact, small businesses are usually at the forefront of demand generation, the subject of my current research.

These days, market share no longer guarantees profitability. We must understand how companies large or small become profitable through creativity and being inventive.

This is the core question for any size company that is trying to create value for the customer and increase their profitability. Curt: Are there, say, top three rules of thumb that a business should ask themselves when they think about creating demand?

Adrian: Sure, but there are actually four steps to demand creation, not three. Am I providing a good offer to the customer? Is my offer magnetic? What I mean by magnetic is — does my offer have great functionality as well as great emotional content? Companies must provide an emotional connection for their customers.

In addition, is the backstory the right infrastructure or deals in place? Can I find the right triggers that will get customers off the fence and actually buy my product? As you can see, there are many things that characterize companies that are very good at demand creation. Curt: The world has become very fragmented. Every single industry is being relentlessly commoditized right now. Everybody is desperately seeking a solution to this problem.

What advice would you give companies as they look to increase their odds of success while trying to figure out a new profit model? So how does a company create profitability in their industry and which profit model will be the best fit for them? Profit models and demand here are interlinked. Typically, only three to four profit models that potentially seem like a good fit are left after this initial cut.

Companies must determine if the profit model will perform the job that needs to be done. Then companies need to turn to demand creation. Subsequently, the profit model is about how much value a company can get back. For example, companies who give a free trial or a free sample are trying to create a trigger.

Think about the profit model in parallel with how demand creation happens. The hassle map and the magnetic offer are so powerful that choosing or creating a profit model is much easier. Great companies that excel at demand creation can grow their business using less advertising and less of a sales push.

Because they give customers something to talk about. This concludes our Adrian Slywotzky interview series. He is also an avid author and speaker. Published on: Jun 29, More from Inc.


Value migration

Companies like Microsoft, Nucor, Starbucks, and Southwest Air have captured growth in revenue, profits, and market value from previously dominant competitors like IBM, U. Steel, General Foods, and United Airlines. How have they done it? Not with new products or innovative technology, but with superior business designs. Slywotzky charts the path of Value Migration from obsolete to new business designs and identifies seven patterns of Value Migration that every manager should know. He reveals the specific strategic tools you can use in any company in any industry to anticipate customer changes and then design a business that will capitalize on the inevitable migration of value.


Value Migration

Slywotzky in pdf format, then you have come on to the right.. According to Slywotzky, value migration is the flow of economic and shareholder value away from.. The Art of Profitability by Adrian Slywotzky 1. It is hugely profitable as long as it continues to be dramatically lower-cost.


Value Migration: How to Think Several Moves Ahead of the Competition



Adrian Slywotzky


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