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Title: How Companies Win: Profiting From Demand-
Driven Business Models No Matter What Business
You’re In
Author: Rick Kash and David Calhoun
Stars: ***
Companies have spent millions of dollars wringing every last drop of
savings out of their supply chains. This is a good thing. Unfortunately,
according to the authors, they have neglected the demand side.
Companies could get away with this supply-focused strategy in the past,
because demand out-stripped supply. Now, the tables have turned and
there is an over-abundance of supply. It’s time for businesses to shift their
focus.
Doing so is not as simple as merely asking customers what they want,
because they don’t always know. Companies need to recognize trends
and patterns in markets and customer segments to determine what
customers will want in the future. The authors provide a recipe for this
demand-driven model to include separating markets into customer
demand pools (based on profitability and reasons behind purchasing
decisions rather than on demographics), and demand-chain integration.
Is your business a fit for this demand-driven model? The authors argue
that the concept applies to all businesses – even those that deal in
commodities. In fact, to them, there is no such thing as a commodity
business - “10 years ago water, dirt, and air were free, omnipresent, and
about perfect… Today, thanks to an understanding of demand, they are
three of the fastest and most profitable product categories in the business
world. Yet nowhere is there more supply than in water, dirt, and air.”
This book will challenge you to think about ways to improve your business
and provide creative ideas and instructions for doing so.
Driven Business Models No Matter What Business
You’re In
Author: Rick Kash and David Calhoun
Stars: ***
Companies have spent millions of dollars wringing every last drop of
savings out of their supply chains. This is a good thing. Unfortunately,
according to the authors, they have neglected the demand side.
Companies could get away with this supply-focused strategy in the past,
because demand out-stripped supply. Now, the tables have turned and
there is an over-abundance of supply. It’s time for businesses to shift their
focus.
Doing so is not as simple as merely asking customers what they want,
because they don’t always know. Companies need to recognize trends
and patterns in markets and customer segments to determine what
customers will want in the future. The authors provide a recipe for this
demand-driven model to include separating markets into customer
demand pools (based on profitability and reasons behind purchasing
decisions rather than on demographics), and demand-chain integration.
Is your business a fit for this demand-driven model? The authors argue
that the concept applies to all businesses – even those that deal in
commodities. In fact, to them, there is no such thing as a commodity
business - “10 years ago water, dirt, and air were free, omnipresent, and
about perfect… Today, thanks to an understanding of demand, they are
three of the fastest and most profitable product categories in the business
world. Yet nowhere is there more supply than in water, dirt, and air.”
This book will challenge you to think about ways to improve your business
and provide creative ideas and instructions for doing so.
V E N T U R E S , L L C