Issue 77 - 05 | O Brave New World: Driving Profitable Growth in the New Demand EconomyBy Rick Kash
Published Dec. 8, 2010 12:00 p.m.
For more than twenty years, the growth formula for American business has been simple: increase revenues by expanding product offerings while reducing supply chain costs.
In other words, fill up the store shelves and keep the consumer’s attention by constantly offering new variations on existing products, packaging and prices. Meanwhile, use the powerful new palette of Supply Chain Management tools to manage and drive down the cost of production to maintain constant productivity improvement.
As a strategy, this growth formula worked brilliantly for a generation . . .long enough for both business executives and academics to forget that this strategy was merely the appropriate response to a distinct economic era, not a fundamental law of business.
Now, we are being punished for that forgetfulness.”
About Rick Kash | Rick Kash is the founder and CEO of The Cambridge Group, and coauthor of the new book, How Companies Win: Profiting from Demand-Driven Business Models No Matter What Business You’re In (HarperBusiness). His previous book was The New Law of Demand and Supply: The Revolutionary New Demand Strategy for Faster Growth and Higher Profits (Currency/ Doubleday; September 2002). In addition to The Cambridge Group, he co-founded Spectra Marketing Systems, a micro-marketing supermarket and mass merchandiser information system used by more than 90% of packaged goods and beverage marketers. To learn more about his new book, visit www.howcompanieswin.com.