Even if profitability is allowed in an industry and the profit model is understood, there are still significant differences in performance, depending on the norms, expectations, and culture that have been created within the organization.

The strategic control of a business design refers to the company’s ability to protect its profit stream. It answers the questions: “Why should a customer buy…

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vigorous pursuit of market share is done at the expense of business design innovation.

Even the most powerful profit engine can be neutralized by a business design that is unnecessarily asset-intensive. Asset intensity absorbs the profit and leaves no cash flow for the shareholders.

In the old world, the rule was: Every industry makes money, and the market share leaders make the most money.

customer preferences of style, color, price, and so on, are of utmost importance.

10 to 15 percent of the customer base is unprofitable, consisting of buyers who absorb the company’s resources and do not provide a return.

“firewall” brand

(“Where will I be allowed to make a profit?”)