“the partners’ strategic goals”: Gary Hamel, Yves Doz, and C.K. Prahalad, “Collaborate with Your Competitors—and Win,” Harvard Business Review, Jan-Feb 1989 issue, https://hbr.org/1989/01/collaborate-with-your-competitors-and-win.
PATH 10 UNCONVENTIONAL STRATEGIES
“Swim upstream”: Sam Walton with John Huey, Sam Walton, Made in America: My Story (New York: Bantam, 2012), p. 317.
Seventy-nine percent of consumers: Mathew Sweezey, “The Future of Marketing: Five Marketing Megatrends for 2018,” MarketingProfs, November 29, 2017, www.marketingprofs.com/articles/2017/33206/the-future-of-marketing-five-marketing-megatrends-for-2018.
Eighty-one percent of business executives: The Business Case for Purpose: A Harvard Business Review Analytic Services Report, sponsored by EY Beacon Institute, 2015, www.ey.com/gl/en/issues/ey-beacon-institute-the-business-case-for-purpose.
Sixty-six percent of consumers: “Consumer-Goods’ Brands That Demonstrate Commitment to Sustainability Outperform Those That Don’t”, Nielsen, http://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html.
Social capital is achieving a newfound status: Dimple Agarwal et. al., “The rise of the social enterprise,” Deloitte Insights, March 28, 2018, www2.deloitte.com/insights/us/en/focus/human-capital-trends.html.
Sixty-four percent won’t take a job: “Half of Employees Won’t Work for Companies That Don’t Have Strong CSR Commitments,” Sustainable Brands, June 1, 2016, www.sustainablebrands.com/news_and_views/organizational_change/sustainable_brands/half_employees_wont_work_companies_don%E2%80%99t_hav.
“If you want to grow”: Jillian D’Onfro, “15 quotes that show the strange, relentless genius of billionaire Alibaba founder Jack Ma,” Business Insider, July 1, 2016.
“A desire for purpose”: Patrick Struebi, “Are We Becoming More Socially Responsible?,” WEForum.com, October 2, 2015, www.weforum.org/agenda/2015/10/are-we-becoming-more-socially-responsible.
Apple’s most memorable ad campaigns: Adam Lashinsky, “Apple’s Tim Cook Leads Different,” Fortune, March 26, 2015, http://fortune.com/2015/03/26/tim-cook/.
“There’s all this incredible energy”: Robert Safian, “Salesforce’s Marc Benioff on the Power of Values,” Fast Company, April 17, 2017, www.fastcompany.com/40397514/salesforces-marc-benioff-on-the-power-of-values.
“My goals for”: “Building a Company with Heart,” Salesforce.com, www.salesforce.com/company/ventures/pledge1.
Salesforce was ranked #1: Andrew Nusca, “These are Fortune,” 100 Best Companies to Work For in 2018,” Fortune, February 22, 2018, fortune.com/2018/02/22/best-companies-to-work-for-2018/.
“What we said was”: Andy Boynton, “Unilever’s Paul Polman: CEOs Can’t Be ‘Slaves’ to Shareholders,” Forbes, July 20, 2015, www.forbes.com/sites/andyboynton/2015/07/20/unilevers-paul-polman-ceos-cant-be-slaves-to-shareholders/2/#60b8ff3b6f06.
“I also made it very clear”: Boynton, “Unilever’s Paul Polman: CEOs Can’t Be ‘Slaves’ to Shareholders.”
BlackRock’s chief executive: Alicia McElhaney, “Larry Fink to CEOs: Contribute to Society or Lose BlackRock’s Investment,” Institutional Investor, January 16, 2018, www.institutionalinvestor.com/article/b16j67x4y04cvx/larry-fink-to-ceos-contribute-to-society-or-lose-blackrock%E2%80%99s-investment.
“Goals are only wishes”: Melinda Gates, at the World Economic Forum 2016, “Progress towards Parity” panel, January 22, 2016, https://www.weforum.org/events/world-economic-forum-annual-meeting-2016/sessions/progress-towards-parity.
“Make TOMS a movement again”: Blake Mycoskie, “The Founder of TOMS on Reimagining the Company’s Mission,” Harvard Business Review, Jan-Feb 2016 issue, https://hbr.org/2016/01/the-founder-of-TOMS-on-reimagining-the-companys-mission.
TOMS’s concept of “one-for-one”: Shawn Donnelly, “16 Brands That Use the TOMS Model of One-for-One Giving,” RealClear Life, n.d., www.realclearlife.com/books/16-brands-use-TOMS-model-one-one-giving.
“Being an inspiration”: Leigh Buchanan, “What’s Next for TOMS, the $400 Million For-Profit Built on Karmic Capital,” Inc., n.d., www.inc.com/magazine/201605/leigh-buchanan/TOMS-founder-blake-mycoskie-social-entrepreneurship.html.
“We have to execute”: Quoted in Gary Burnison, No Fear of Failure (San Francisco: Jossey-Bass, 2011), p. 34.
“Eighty-one percent of millennials”: Sarah Landrum, “Millennials Driving Brands to Practice Socially Responsible Marketing,” Forbes, March 17, 2017, www.forbes.com/sites/sarahlandrum/2017/03/17/millennials-driving-brands-to-practice-socially-responsible-marketing/#1ae315c24990.
“Eighty-three percent of junior staff”: Sweezey, “The Future of Marketing: Five Marketing Megatrends for 2018.”
millennials are looking for brands: The 2006 Cone Millennial Cause Study, Cone, Inc., 2006, http://www.centerforgiving.org/Portals/0/2006%20Cone%20Millennial%20Cause%20Study.pdf.
2017 “Change the World” list: “Change the World,” Fortune, n.d., http://fortune.com/change-the-world/.
“Giveback is a unique feature”: “About Lemonade,” Lemonade Inc., n.d., www.lemonade.com/faq#service.
Lemonade has raised a total of $180 million: Paul Sawers, “Lemonade Raises $120 Million from SoftBank, Others to Take Its Chatbot-Based Insurance Service Global,” VentureBeat.com, December 19, 2017, https://venturebeat.com/2017/12/19/lemonade-raises-120-million-from-softbank-others-to-take-its-chatbot-based-insurance-service-global.
in August 2017, Lemonade Insurance: John Peters, The Lemonade Insurance Underwriting Report—Almost a Year In, Lemonade Inc., August 30, 2017, www.lemonade.com/blog/lemonade-h1-underwriting-report-2017/.
at Lemonade, a woman is 50 percent more likely: Yael Wissner-Levy, “Why Do Women Love Lemonade More?,” Lemonade Inc., July 23, 2017, updated March 2018, www.lemonade.com/blog/women-love-lemonade/.
“We love our customers”: Peters, The Lemonade Insurance Underwriting Report—Almost a Year In, www.lemonade.com/blog/lemonade-h1-underwriting-report-2017.
prides itself on its transparency: Daniel Schreiber, “The Lemonade Transparency Chronicles,” Lemonade Inc., January 10, 2017, www.lemonade.com/blog/lemonade-transparency-chronicles/.
Its customers are: Shai Wininger, “Lemonade’s Year in Review, 2017,” Lemonade Inc., January 17, 2018, www.lemonade.com/blog/lemonade-review-2017.
“Purpose is that sense”: Mark Zuckerberg’s Commencement Address at Harvard,” Harvard Gazette, May 25, 2017, https://news.harvard.edu/gazette/story/2017/05/mark-zuckerbergs-speech-as-written-for-harvards-class-of-2017.
“The origin of Grameen Bank”: “History of Grameen Bank”, Grameen Research, http://grameenresearch.org/history-of-grameen-bank/.
The Grameen Bank Project: “History of Grameen Bank of Bangladesh,” Grameen Bank, www.grameen-info.org/history/.
Grameen pioneered micro-loans: Evaristus Mainsah, Schuyler R. Heuer, Aprajita Kalra, and Qiulin Zhang, “Grameen Bank: Taking Capitalism to the Poor” (paper written for “Emerging Financial Markets” course at Columbia Business School, New York, fall 2003), www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/848/Grameen_Bank_v04.pdf.
“When you sacrifice”: Kara Swisher, “Arianna Huffington Has Raised Another $30 Million for Thrive Global at a $120 Million Valuation,” Recode.net, November 29, 2017, www.recode.net/2017/11/29/16714392/arianna-huffington-30-million-thrive-global-120-million-valuation.
“Mission-driven” companies: Josh Bersin, “Becoming Irresistible: A New Model for Employee Engagement,” Deloitte, Insights, Deloitte Review 16, January 26, 2015, www2.deloitte.com/insights/us/en/deloitte-review/issue-16/employee-engagement-strategies.html.
Companies with highly engaged workforces: Susan Sorenson, “How Employee Engagement Drives Growth,” Gallup, Business Journal, June 20, 2013, http://news.gallup.com/businessjournal/163130/employee-engagement-drives-growt
h.aspx.
“We stand on the brink”: Klaus Schwab, “The Fourth Industrial Revolution: What It Means, How to Respond,” WEForum.org, January 14, 2016, www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond.
“Not everything that can be counted”: William Bruce Cameron, Informal Sociology: A Casual Introduction to Sociological Thinking (New York: Random House, 1963).
“Success is where”: Attributed to Bobby Unser. Original source unknown.
“Execution is not just”: Larry Bossidy and Ram Charan, Execution: The Discipline of Getting Things Done (New York: Crown Business, 2002), p. 6.
“When we do something”: Shelby Skrhak, “Daniel Pink on Why Time of Day Matters,” Success.com, January 11, 2018, www.success.com/podcast/daniel-pink-on-why-time-of-day-matters.
AMAZON CASE STUDY: STAYING IN DAY ONE
“If we have a good quarter”: Daniel Lyons, “Why Bezos Was Surprised by the Kindle’s Success,” Newsweek, December 20, 2009, www.newsweek.com/why-bezos-was-surprised-kindles-success-75509.
Amazon’s U.S. customers read: Sanjeev Sularia, “iTunes, Spotify, Kindle: Reinventing How You Spend,” Brand Quarterly, December 19, 2017, www.brandquarterly.com/itunes-spotify-kindle-reinventing-spend.
‘International Shopping’ experience: “Amazon launches the International Shopping Experience in the Amazon Shopping App,” Business Wire, April 17, 2018.
“Jeff, what does Day 2 look like?”: Bezos, “2016 Letter to Shareholders.”
ABCDEFGHIJKLMNOPQRSTUVWXYZ
INDEX
The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.
accelerate growth. See Market Acceleration
Adidas, 74, 75, 77, 80, 211
adoption rates, 72, 297
Airbnb, 104
airline alliances, 229–31
Airline Deregulation Act of 1978, 227–28
airlines, 227–32
Alba, Jessica, 82, 84, 85–86, 88, 108
Alling, Jim, 275
Amazon, 302–8
Fire Phone, 131
Netflix rivalry, 202, 204, 206
partnerships, 85–86, 250, 305, 306
Walmart rivalry, 169–73
Whole Foods purchase, 169–70, 209, 275, 306
Amazon Prime, 200, 304, 305
Amazon Web Services (AWS), 304–5
American Airlines (AA), 230
American Express, 230, 231
Anastas, Paul, 81
Anheuser-Busch, 209
Ansoff Matrix, 129
Apple, 233–36, 253, 255, 267, 268
App Store, 201, 233, 234
iTunes, 233–34
Apple Music, 192, 193, 197, 202, 233, 234–36
Apple Store, 233–34
Apple Watch, 62, 234
Ash, Mary Kay, 157
Ashoka, 288
autonomous (self-driving) cars, 246–50
Avery, Jill, 187
Bain Capital, 275
Bain & Company, 4, 40
BAMTech, 202
Barbie, 89–94
Barra, Mary, 129
Bates, Tony, 224–25
Benioff, Marc, 162–63, 164, 166, 268
Best Buy, 222, 225, 226
Bezos, Jeff, 1, 302, 303, 304, 307
big data analytics, 23, 67, 280
Blockbuster, 117–22
Blue Apron, 205–10
“Blue Ocean” strategy, 75, 86, 88, 304
BMW, 224, 246–50
Bonobos, 170–71
bottom-line profitability, 1–2
Bradham, Caleb, 44
brand promise, 14
Buffett, Warren, 31
business ethics, 178, 179, 180–81
business reputation, 13, 180
buyers vs. customers, 15
buzz, 46, 48–49
Cameron, William Bruce, 295
caring capitalism, 272–77, 279–84, 286–90
Carnegie, Andrew, 243
Chambers, John, 133, 258, 260
Charan, Ram, 298
Child, Lydia Maria, 145
China, 70, 128, 173
Mattel’s story, 91–93
Chipotle, 51
Christensen, Clayton, 102, 151–52, 159
Churn, 5, 186–214
airlines’ story, 232
Amazon’s story, 305
Blue Apron’s story, 205–10
controlling, 202–3
importance of, 186
managing to maximize growth, 186–91
Netflix’s story, 199–204
potential pitfalls, 212–14
Salesforce’s story, 167
Sears’s story, 63, 64
Spotify’s story, 192–98
statistics on, 186
churn rate, 189–90, 212–13, 297
Cisco Corporation, 256–60
cloud services, 188, 304
Coca-Cola, 44–45, 47, 209
combination, and growth path, 6–7
“conscious capitalism,” 289–90
Constant Contact, 187
context, and growth path, 6–7
Cook, Tim, 233, 234–35
Co-opetition, 5, 242–62
airlines’ story, 232
Amazon’s story, 305, 306
Churn and, 213–14
Cisco-VMware-EMC, 256–60
Customer and Product Diversification and, 152, 153–54, 262
definition of, 242–43
Fiat Chrysler, BMW, and Intel’s story, 246–50
importance of, 242–44
potential pitfalls, 261–62
Product Expansion and, 123, 125–26
Sephora’s story, 22
statistics on, 242
Unconventional Strategies and, 292–93
Wintel’s story, 251–55
countercyclical growth, 300–301
crowdsourcing, 146, 288
customer acquisition costs (CAC), 39–40, 42, 207, 212
Customer and Product Diversification, 5, 128–54
Amazon’s story, 304–5
Blockbuster’s story, 118
Blue Apron’s story, 206, 210
Co-opetition and, 152, 153–54, 262
The Honest Company’s story, 85–86
importance of, 128
Kylie Cosmetics’s story, 111
LEGO’s story, 145–49
Lemonade Insurance’s story, 280
McDonald’s story, 52
Marvel’s story, 133–39
Mattel’s story, 90–94
Netflix’s story, 201
PayPal’s story, 140–44
potential pitfalls, 150–54
Red Bull’s story, 46
Sears’s story, 58
Spotify’s story, 196
statistics on, 128
Customer Base Penetration, 5, 6, 38–67
airlines’ story, 231, 232
Amazon’s story, 304, 305
Under Armour’s story, 77
Blockbuster’s story, 120
bringing consumers to the product, 46–48
Customer and Product Diversification and, 129–30
The Honest Company’s story, 84–85
importance of, 38
knowing your customers, 46
Kylie Cosmetics’s story, 111
LEGO’s story, 148
Market A
cceleration and, 42, 72
maximizing growth potential, 38–42
McDonald’s story, 50–55
Optimize Sales and, 183
PayPal’s story, 144
potential pitfalls, 66–67
Red Bull’s story, 43–49
Salesforce’s story, 166
Sears’s story, 56–65
Spotify’s story, 194
statistics on, 38
Walmart’s story, 171
Wells Fargo’s story, 179
customer defection. See Churn
Customer Experience, 5, 12–36
airlines’ story, 231, 232
Amazon’s story, 303
Blockbuster’s story, 118
definition of, 14, 15
GoPro’s story, 226, 230
The Honest Company’s story, 86
importance of, 12
John Deere’s story, 115
LEGO’s story, 146, 148
Lemonade Insurance’s story, 280
McDonald’s story, 52
measuring, 14–15
Optimize Sales and, 160–61, 183
potential pitfalls, 34–36
Sears’s story, 57, 63
Sephora’s story, 18–23, 21–22
setting the scene, 12–18
Shake Shack’s story, 24–27
shift in customer expectations, 13–14
Spotify’s story, 194, 197
Starbucks’s story, 28–33
statistics on, 12
Walmart’s story, 171
Wells Fargo’s story, 176–77, 179
customer feedback, 25, 27, 165
customer lifetime value (CLV), 40, 41, 187–88, 190, 211
customer relationship management (CRM), 41–42, 159, 162, 164–66
customer retention, 186, 190–91, 206–7, 214
customer reviews, 13–14
customer satisfaction (CSAT) scores, 35
DC Comics, 133–39
Death of a Salesman (play), 180
De Lapuente, Christopher, 22
Dell, Michael, 216–17
Dell Computer, 216–18, 256
Delligatti, Jim, 52–53
Delta Airlines, 230