The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits

we are looking for “future-defining customers,” those whose issues, practices, and solutions today represent what the median of marketplace behavior will be tomorrow.

In a multicomponent system, if the business design does not include an aggressive focus on the high-profit components, it is incomplete and far less profitable than it could potentially be.

relative market share is not as important as the ability to tap into and control the flow of the largest deals. Two equal market shares—one composed of a hundred small deals, the other of five or six big ones—will not produce equivalent levels of profitability.

great business design is a combination of superb knowledge about customers and profit (“You can’t intuit the facts”), together with great strategic imagination. The reinventors’ unique skill is strategic creativity: constantly reversing traditional…

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customer segment

When properly reinvested, the two to three points of incremental profit have a remarkable impact

Successful entrepreneurs live at the opposite end of the spectrum from conventional market research.

profit zone is the area of your economic neighborhood where you are allowed to earn a profit.

vulnerable to entrepreneurs who are in direct contact with customers or proactively solicit feedback, and who remain frugal because they have no cushion of affordability

with the player who has the best business model, a model designed for customer relevance and high profitability.