Grab more market share

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9781118130049_cover.inddBy Ross Shafer (2011)
This is a thin of slightly over 100 pages, simple to read. There are a few ideas you can grab from this book.

1. First, you must attack market share
This book talks that especially in a slowly recovering economy, a stagnant market or declining market, your best and only plan is to “steal” market share from your competitors. It is not to settle 1-2% growth in the recovery.

It gives the story of how McDonalds had noticed growth opportunity in the speciality coffee and smoothie business and that people like Starbucks and Juice It Up. The McCafe concept was tested many years earlier, but McDonalds did not launch it until early 2009. By 2009, it charged Starbucks full bore, and Starbucks had already begun cut prices in some market due to the economy. In second quarter of 2010, McDonald’s raked in $420 million, thereby making its billion-dollar target a reality.

McDonalds did not create a fresh billion dollars in coffee consumption. Rather, it stole a staggering amount of business from Starbucks and other coffee speciality stores. Starbucks closed more than 270 locations in year 2009.

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2. Don’t let culture embarrass you

Organizations that strive to remain relevant to their clients, suppliers, customers and employees will always weather an economic crisis better than those that disregard the world around them. Being relevant means you matter to them. The collective public consciousness (aka culture) is the entity that determines whether a given venture will succeed or fail.

Trends never sneak up on anybody. Staying relevant only happens when you continue to innovate. Organizations love to overthink strategy and tactics. However innovation does not require a complicated formula. If you create a plan to leverage public consciousness, they have the power to make you wealthy and famous.

 

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3. They want customer urgency … not customer service.

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The overall summary is that “To become one of the most successful organizations during the recovery phase of the current economy and beyond, is to never forget that the public knows what they want. So listen carefully and do not ignore trends.

If you ever find yourself at a crossroads of decision about your company, remember the immortal words :

“It’s always easier to ride the horse in the direction it’s going.” – Chuck Shaufer, 1927-2001

 

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