Simplify: How the Best Businesses in the World Succeed

Simplify: How the Best Businesses in the World Succeed


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Product Details

ISBN-13: 9781599185996
Publisher: Entrepreneur Press
Publication date: 10/11/2016
Pages: 224
Sales rank: 579,438
Product dimensions: 9.10(w) x 6.20(h) x 1.30(d)

About the Author

Richard Koch is an entrepreneur who has made over $300 million from starting businesses and investing in early stage venture capital. His businesses have included Filofax, Plymouth Gin, Belgo Restaurants, Betfair, FanDuel, and Auto1. Formerly he was a consultant with the Boston Consulting Group and a partner of Bain & Company before co-founding LEK Consulting. He is author of many books on business and ideas, including The 80/20 Principle, which has sold over a million copies and been translated into 35 languages. Richard wrote the foreword to the Entrepreneur Press bestseller, 80/20 Sales and Marketing by Perry Marshall.

Greg Lockwood is a founder of Piton Capital, a London-Based venture capital firm that invests in businesses with network effects. He has a Masters of Management degree from the Kellogg Graduate School of Management, and is the co-author of Superconnect with Richard Koch.

Perry Marshall is the #1 author in the world for independent advice on Google's advertising system. His book The Ultimate Guide to Facebook Advertising is similarly respected in its realm, and 80/20 Sales and Marketing is the definitive text of its kind.

Table of Contents

Foreword Perry Marshall x

Preface Richard Koch xiii

Preface Greg Lockwood xvii

The Secret Red Thread ixx

How to Simplify xxv

Part 1 Great Simplifiers

1 The Man Who Democratized Travel 3

Results 10

Key Points 11

2 The Billionaire Who Travels by Bus 12

How Can IKEA Be So Much Cheaper? 13

How IKEA Seduces Its Customers 17

Results 20

Key Points 21

3 The Assembly Line of Food 22

Results 30

Key Points 31

4 Victory Over Big Brother: The Real Story of 1984 33

Which Type of Simplifying is Better? 41

Results 43

Key Points 44

5 The Strategy Simplifies 45

Results 56

Key Points 57

6 Taxi! The Brave New World of Apps 59

Travis Kalanick and Garrett Camp: Uber 60

The Samwer Brothers: Easy Taxi 60

Daniel Ek: Spotify 69

Joe Gebbia: Airbnb 71

Back to Uber: Results 73

Key Points 74

7 The Two Strategies and Their Trade-offs 76

Three Precepts for the Price-Simplifier 79

Two Precepts for the Proposition-Simplifier 80

Making Clever Trade-Offs 81

Virtuous Trade-Offs 83

A Visit to London Zoo 85

Key Points from Part One 90

Conclusion 91

Part 2 How to Simplify

8 Which Type of Simplifier Will You Be? 95

The Attitude Test 96

Scoring 104

The Gap Test 105

The Key Tests 112

Keys in Price-Simplifying 113

Keys in Proposition-Simplifying 114

The Better Skills Test 115

Key Points 120

9 How to Proposition-Simplify 122

Step 1: Easier to Use 124

Step 2: More Useful 129

Step 3: More Aesthetically Appealing 132

Are Free Services Price- or Proposition-Simplifying? 134

Conclusion 136

Key Points 137

10 How to Price-Simplify Part I: Product Redesign 139

How to Spark a Price Revolution 143

Redesign the Product 144

11 How to Price-Simplify Part II: Business System Redesign and Scale Up 153

Redesign the Business System to Transform Your Industry 154

Scale Up 171

Conclusion 172

Key Points for Chapters 10 and 11 172

Part 3 Save The Dinosaurs?

12 Do They Need Saving? 177

Warning Signals Test 180

Key Points 183

13 The Weakness of Strong Firms: Five Bad Reasons Why Managers Don't Simplify 184

The Overhead Trap 185

The Cannibalization Trap 187

The Customer Trap 191

The Complexity Trap 194

The Skills Trap 196

Key Points 199

14 How Market Leaders Can Simplify Without Tears 201

Countering Price-Simplifying 203

Countering Proposition-Simplifying 208

Counter Price- and Proposition-Simplifying 210

Is the Penny Dropping About Acquiring Proposition-Simplifiers? 211

Key Points 212

Part 4 The Rewards of Simplifying

15 Does Price-Simplifying Pay? 215

Ford 216

McDonald's 219

Southwest Airlines 221

IKEA 223

Charles Schwab 225

Honda 227

16 Does Proposition-Simplifying Pay? 231

Amazon 232

Google 238

Apple (the iPod Years) 239

ARM 242

Tetra Pak 243

The Boston Consulting Group (BCG) 245

17 The Success of Simplifying: An Archaeological Dig 248

How Do the Companies Fare in Terms of Increasing Their Market Value? 276

How Do the Companies Fare in Terms of Annual Increase in Value? 256

How Do the Companies Fare in Terms of Outperformance of Their Rivals? 258

Industry-Wide Simplifying 260

Conclusions 263

18 The Limitations, Power, and Glory of Simplifying 267

Are There Any Viable Non-Simplifying Strategies? 268

Simplifying in the Big Picture 275

The Next Steps for Entrepreneurs 280

Next Steps for Corporate CEOs 281

Endnotes 283

Acknowledgments 293

About the Authors 297

Index 299

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