The New Market Leaders: Who's Winning and How in the Battle for Customersby Fred Wiersema, Frederik D. Wiersema, Frederik D. Wiersema
In the decade since Fred Wiersema coauthored the #1 bestseller The Discipline of Market Leaders, a momentous shift has occurred. We have entered an age of customer scarcity -- an age in which exciting, often unorthodox companies are revolutionizing the global marketplace. In this path-cutting work, Wiersema provides new benchmarks for ranking businesses in this new economy and reveals the strategies that set winning companies apart.
After tracking 5,000 companies worldwide for over six years, Wiersema discovered that just a few hundred of these exert tremendous influence on the new economy. Here, he explains why traditional measures of competitive prowess no longer apply and, using new yardsticks, identifies today's 100 most influential businesses. With practical strategies for managers and investors, Wiersema then shows how to recognize and emulate these dynamic new market leaders.
Donald P. Jacobs Dean, Kellogg Graduate School of Management, Northwestern University Fred Wiersema presents a thorough and incisive analysis of how companies must rework themselves to compete in today's technology-laced business environment.
Rick Ellenberger President and CEO, Broadwing Inc. The New Market Leaders is a compelling examination of the buying patterns and decision drivers of today's increasingly sophisticated and skeptical customers. It is essential reading for any CEO looking to achieve a customer-centric profile for their company.
Alan Siegel Chairman & CEO, Siegelgale Fred Wiersema presents an elegant case for what it takes to be a market leader in this fiercely competitive and volatile new economy. I plan to send copies to my staff and clients.
Samuel K. Skinner Chairman, President & CEO, US Freightways Corp. The New Market Leaders gives business leaders important and invaluable advice on how the best companies win the battle for customers. The book is a winner!
Philip Kotler author of Kotler on Marketing Wiersema brilliantly demonstrates that the new market leaders turn customer scarcity into customer abundance through superior customer value creation and passion. This is one of the best marketing books in recent years.
D. D. "Del" Hock Former Chairman/CEO, Public Service Company of Colorado Wiersema's extraordinary insights into how market leaders develop their business strategies to win the increasingly competitive battle for customers is a real eye-opener. The book represents an important contribution to business literature...and offers a host of ideas for future market leaders.
James J. O'Connor Retired Chairman & CEO, Unicom Corp. Organizations in today's fast-paced, rapidly changing world need new ways to think about strategy, customers, technology, and growth. Wiersema hits all the bases.
- Free Press
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Read an Excerpt
The idea for this book originated during a World Economic Forum summit meeting in 1996. Over lunch, I joined a number of U.S. and European executives in aan animated discussion about the emerging Internet economy. In the United States, some of the Europeans noted, managers appear fascinated by colorful stories about upstarts, whereas in Europe they show a bias for hard data and solid track records. "Tell me," one person asked, "when you watch all the hype about the the Web and these New Economy players, how do you size up their true influence and potential?" With no satisfactory answer, it occurred to me that we needed a fresh way to look at companies' performance and market strategies, and one that would apply to both conventional and new businesses.
Consider: When Fortune magazine surveyed more than ten ten thousand executives, directors, and securities analysts to compile its 1999 lists of most-admired companies, Catepillar Inc. led the industrial and farm equipment suppliers, and Merrill Lynch & Co., the securities firm.
The question is, did Fortune's list really identify the role models for the New economy? Did it pick out those companies that strongly influence how the marketplace is evolving in this era of unprecedented competition? These questions questions assume critical importance as managers try to cope with today's challenges.
When I designed my own list of the top 100 new market leaders that same year, Caterpillar and Merrill Lynch were not on it. And that was only the beginning of where the lists differed.
My lists included then ( as it still does) Yahoo! Inc., QUALCOMM Inc., Amazon.com, Inc., Amegen Inc., Solectron Corporation, Infinity Broadcasting Corporation, and Carnival Corporation. Theses highfliers and others whose names you recognize instantly--because their appeal to customers and performances in the stock market over the past several years have been nothing short of phenomenal--were not even mentioned on Fortune's 1999roll of honor. A year later, Fortune still had not recognized them.
Meet the Author
Fred Wiersema advises senior executives on market strategy. Born in the Netherlands, he holds a doctorate from Harvard Business School and lives near Boston.
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i have just read this wonderful book and i wonder if we could buy the rights of the book in order to translate into vebrew and publish?
Dr. Fred Wiersema (of The Discipline of Market Leaders) returns with a look at how the disciplines of becoming a market leader have evolved since the earlier book was written. This book is much better done in terms of analysis than the prior one, and comes closer to capturing the state of the art. Basically, Dr. Wiersema argues that the most effective companies are now gaining customers by employing more than one of the original disciplines (customer relationships, having cutting-edge innovative offerings, and being operationally superb). The book's main weakness is that by selecting companies based on a high market capitalization/sales ratio the book strays from a focus on finding companies that are the best at adding customers and making money serving them. As a result, some pretty marginal companies made it into the study group (Priceline is one example). The companies in the study are compared to the Fortune Most Admired List. The companies outlined here are much more consistently interesting than the aging behemoths losing market share that the Most Admired list carries. Looking at 5009 companies, 640 were identified as being high in gaining market share (growing much faster than competitors) and in stock price (having a higher market capitalization/sales ratio than competitors). The top names you will recognize: Cisco, GE, Microsoft, Intel, Yahoo!, Home Depot, Wal-Mart, Oracle, Nokia, and AOL Time Warner. If you follow technology stocks, most of the rest will also be known to you. These include companies whose stocks have fallen mightily like JDS Uniphase, Dell, QUALCOMM, Hewlett Packard, Lucent, PMC-Sierra, and At Home. The book makes many observations about the new economy. The basic point is that technology has permitted such substantial productivity gains that there is a lot of excess capacity with low costs. As a result, what companies have to manage is getting customers. Those are the scarce resource. Well, I always thought that you had to start with customers. Peter Drucker once said that the purpose of a business is to create a customer. What does seem different now is that people go to greater lengths to add customers. Dr. Wiersema says that new aspects include: (1) creating a larger-than-life market presence; (2) seeking out customers who stretch capabilities; (3) ensuring that the customer obtains full benefit from your offerings; and (4) acting more boldly (this often means having outsized ambitions). Obviously, the drawback of this approach is that if the business environment turns out differently than you forecast (the norm, not the exception) you are likely to crash and burn. How do you feel about that? Customers are then segmented by the degree of their preference for being self-reliant versus ready for help, and their eagerness to change versus their preference for stability. These scales turn into the searchers (self-reliant, eager to change), collaborators (ready for help, eager to change), streamliners (self-reliant, seeking stability), and the delegators (seeking stability and ready for help). You are encouraged to keep enticing the searchers (Yahoo! is the case study); reassure the streamliners (EMC is the case study); free up the delegators (Solectron is the case study); and team up with collaborators (UPS is the case study). I found the case studies to be pretty superficial compared to what I know about these companies. The book also has a good discussion of what kind of internal environment is needed to act boldly and with enough unity of purpose to succeed. You need a process for facilitating change, an agreement on shared ambitions, clear goals, and knowledge of where you stand. Your mantra should be 'customers, customers, customers.' The book's main weaknesses relate to not considering enough about how to gain market share profitably (any idiot can gain market share if they don't care what it costs, and have enough resources), what the emerging state of the art is (