The Myth of One

We find that very often the example of one firm or one product either deliberately or accidentally becomes the torchbearer for the success or failure of a specific strategy. Managers at other firms in both related and unrelated industries then refer to this single example as an illustration of why a specific strategy in question would work in their own specific circumstances. For example, we find that managers quote the same example of an office products company when claiming the importance of moving their customers from “satisfied” to “very satisfied.” In the case of this specific firm, there was a very significant difference between the repurchase intent of satisfied and very-satisfied customers. However, we have come across numerous cases where such a relationship was either not as strong or not evident at all. However, managers who believe in moving their customers to the top end of the satisfaction scale overweight their single favorite example and fail to verify whether corresponding relationships exist within their own organizational context. Other examples of what we call “the myth of one” include Apple for innovation-driven growth, Wal-Mart for the power of low prices, General Electric for diversification and multicategory branding, and Dell for direct-to-consumer distribution. While the use of these single, illustrative examples is perhaps appropriate, what we find missing is a serious attempt to map the strategic context of the examples onto one’s own circumstances and an evaluation of whether similar benefits will necessarily accrue.