INDEX

A/B testing, 83–84

Accenture, 187

adaptive clothing market, 222–230

Airbnb, 192, 204, 207

airline industry, 33–35

Alibaba Group, 15, 53–54, 64, 89, 92, 104, 108

Alipay, 54, 64, 88, 106

Amazon

Best Buy and, 7, 8, 9, 11, 13

e-reader market and, 14, 43–44, 64, 66, 72

Etsy and, 107–108

focus on WTP by, 43–44, 49–50

American Society of Composers, Authors and Publishers (ASCAP), 77–78

Anand, Ike, 204–205, 207, 217–218

Android operating system, 100, 101

anomaly detection algorithms, 17, 168–169

Apollo Hospitals, 168

Apple, 11, 64, 230

comeback by, 97–101

complements and, 15, 72–75

value creation by, 29–32

artificial intelligence, 168–169

AT&T, 92

ATMs, 80–81

Auerbach, Anna, 134

automobile industry, 167, 169, 193–194

AutoZone, 22

Baidu, 92

Bakhshi, Hasan, 84

banking industry, 158–160

bank tellers, 80–81

Barrett, Craig, 169, 178

barriers to entry, 162–164

BayCare, 116

Bayer aspirin, 190–191

Bell, George, 47

Best Buy, 7–13, 24–25

“Biform Games” (Brandenburger and Stuart), 241n1, 241–242n5

Bigbelly, 44–46

BlaBlaCar, 93

Bloom, Nicholas, 174

BMW, 193

Bogle, John C., 42–43

Bohr, Bernd, 151–152

Booking.com, 204

Bosch Automotive, 16, 151–152

Bowers, Mike, 66–67

Brandenburger, Adam M., 241n1, 241–242n5

brands, 185–194

reverse-positioned, 197

Brazil, 23, 175

Brin, Sergey, 47

Bronnenberg, Bart, 191

Bud Light, 192

Buffett, Warren, 173–174, 178

business models, 47, 51, 77

Business Roundtable, 19, 235, 236, 262n2, 262n3

Butterfield, Stewart, 195–197

buyer-supplier relationships, 143–154

BYJU’S, 77

Calanog, Victor, 153

Camacho, MaryAnn, 117–119, 120

capitalism

public opinion on, 19, 239

shareholder, 235–236, 239

stakeholder, 235–240

carbon pricing, 238

Car Trim, 143

cashless payments, 87–89

Cassidy, Brendan, 136–137

Chen, M. Keith, 132, 133

Chevrolet Impala, 193

China, 23, 53, 88–89, 157, 191

Citibank, 160

Cleveland Clinic, 168

Coalition for App Fairness, 74

Coca-Cola, 161–162

Colgate-Palmolive, 22, 192

commoditization, 16–17

compensation, 4

attracting talent and, 15–16, 117

lean production and, 147–148

policies on, 124–129

WTS and, 6–7, 29, 30–31, 115–116, 140–141

competition, 33–35

complement pricing and, 74, 75

e-commerce, 95–96

hypercompetition, 27

local, 93–96

market size and, 164

network effects and, 103–104

competitive advantage, 6, 11–12, 14, 26–27, 207

dual advantages and, 230

network effects and, 106–107

WTP and, 41–42, 46

complementarity, measurement of, 81–84

complements, 61–76

distinguishing from substitutes, 77–85

profit pools, 72–76

Co-opetition (Brandenburger and Nalebuff), 241n1

core products, 72

corporate culture, 134–135

cost of capital, 22, 23

costs

fixed, 159–165

productivity and, 157–158, 167

variable, 164

WTS and, 228

cross-side network effects, 109–110

Crowdspring, 138, 139–140

customer delight, 31, 34, 35, 36, 39–52, 96, 106–107

price and, 34–35

by small companies, 106–107

customers

near-customers, 53–60

segmentation of, 111, 208–210

selection effects, 47–49

serving small set of, 109–111

Czerniawska, Fiona, 200

Dean, Annie, 134

Dediu, Horace, 73

Dell, 16, 152–153

Deutsche Bahn, 117

Devers, Cynthia, 27

DiDi, 15, 93

diffusion, of management practices, 174–177

digital platforms, 102–103, 141

Dimon, Jamie, 235

direct network effects, 89–90, 92, 98

Discovery, 48

Dollar Shave Club, 76

D’Onofrio, Jeanine, 225–226, 228

DoorDash, 77

dual advantages, 221, 229–230

Dunkin’ Donuts, 64

EachNet, 53

eBay, 53–54, 106–107

e-commerce, 9, 95–96, 163

economies of density, 162

economies of scale, 17, 19, 157–165

eharmony, 109–110

Ek, Daniel, 70

Elegbe, Mitchell, 65

Ele.me, 77

employees

compensation of, 4, 15–16, 29–31, 115–117, 124–129, 140–141, 147–148

flexible work arrangements for, 131–142

passions of, 135–141

recognition of, 121–122

satisfaction of, 30–31, 115–116, 127–128

value creation for, 16, 115–130, 131–142

entry barriers, 162–164

e-readers, 43–44, 64, 66, 72

Etsy, 107–108

EuroCave, 57, 58–59

Excite, 46–47

Expedia, 203–207

experimentation, to study complementarities, 83–84, 85

Facebook, 29, 91–92, 103–104, 111

FedEx, 152–153

Feriz, Vahidin, 143

financial performance

brand strength and, 186–187

differences in, 21–28

over time, 26–27

ROIC, 21–27

first-mover advantage, 102

fixed costs, 159–165

flexible work arrangements, 131–142

Flickr, 195

Folgers, 191–192

Food52, 136, 137, 138

Ford, Henry, 167, 170–171

Ford, 193

freelancers, 138–141

Frei, Frances, 197, 242, 260n4, 261n5, 262n17

Friendster, 110–111

Gap Inc., 123–124

Garcha, Kulbinder, 73

Gates, Bill, 98–99

General Fusion, 136–137, 140

Germany, 175

gig economy, 131–142

Gillette, 72, 76

Godrej, 192

Gojek, 93

Google, 47, 92, 100, 103–104, 129–130, 185, 187, 204

Gore, Adrian, 48

Grab, 15

Great Recession, 158–159

Greenspan, Alan, 158–159

Griffith, Tricia, 235

Gross, Daniel, 138

Gucci, 189–190

Haier, 58–59

Haiyin, Tan, 53

Hamp, Kate, 135

Han, Young Lee, 189–190

Harkins Theatres, 15, 66–67

Harry’s, 76

Hasegawa, Tatsuo, 51

Hellmann’s, 192

Hermès, 99

Hewlett-Packard (HP), 186–187

Home Depot, 13, 186

Horton, Sarah, 228

Hotels.com, 204

HuffPost, 140

hypercompetitive environments, 27

IBM, 186, 232

iFood, 77

IKEA, 197

independent contractors, 138–141

India, 23, 157, 192

indirect network effects, 90, 92, 98

industries, profitability differences between, 24–26

InnoCentive, 131, 137, 138

innovation, 3, 170–171, 212–213

Instagram, 29

Intel, 169, 177–180, 230, 232

intermediaries, customer needs and, 44–47

Interswitch, 65

Jassy, Andy, 49–50

JetBlue, 197

job quality, 117–122

Jobs, Steve, 97–98

job satisfaction, 30–31, 127–128

Joly, Hubert, 8–13, 24–25

JPMorgan Chase, 17, 159, 235

K&L Gates, 188

Kantar, 185–186

Kaspi.kz, 48–49

Kindle, 43, 64, 66, 72

Kirkland & Ellis, 188

Kraft, 192

Lady Gaga, 39, 40

lean production, 146–148

learning effects, 17, 167–171

Librie, 43

Liday, Michal, 209, 211, 213, 215, 217

life insurance, 55–56

LINE, 93

Lipitor, 39

lobbying, 238–239

local competition, 93–96

Lollo, Niklas, 147

Lomtadze, Mikhail, 48–49

loss aversion, 81

Lowe’s, 13

luxury markets, 189–190

Lyft, 35, 93

Ma, Jack, 53–54

MAC Atheltic Club, 111

machine learning, 168–169

management practices, 17, 173–181

market segmentation, 111, 208–210

market share, 13, 99–101, 103

market size, 162–163, 164

Mastercard, 22, 92

Match.com, 109

Matsumoto, Yasukane, 145, 151

Maxwell House, 191–192

McDonald’s, 215–216

McNamara, Gerry, 27

Mechanical Turk, 131

Mercedes-Benz, 189

messaging apps, 93

Mexico, 192

Michelin, 15, 61–63

Microsoft, 26, 64, 72, 92, 98–100, 232

Miller Beer, 192

Minecraft, 64

minimum efficient scale (MES), 160–162, 165

Miyamoto, Shigeru, 39–40

mobile payments, 87–89

Model T, 167, 170–171

Moneysupermarket.com, 135

Moon, Youngme, 197

Morriss, Anne, 197, 260n4, 261n5, 262n17

Nalebuff, Barry J., 241n1

Narayana Health, 168, 230

near-customers, 53–60

Nespresso, 64

network effects, 15, 87–104, 165

cross-side, 109–110

direct, 89–90, 92, 98

indirect, 90, 92, 98

local competition and, 93–96

platform, 90–93

same-side, 109–110

newspapers, 82–84, 164

New York Times, 91, 164

Nike, 16, 145–149

Nordstrom, 117

Nubank, 52

Ola Cabs, 72

online dating, 109–110

online travel agencies, 91, 102, 203–205

Opentable, 102

operational effectiveness, 173–181

opportunities

identifying novel, 43–44

of near-customers, 53–60

O’Rourke, Dara, 147

Page, Larry, 47

Pake, George E., 79

Palo Alto Research Center (PARC), 79

Pan Bimbo, 192

paper consumption, 79–80

part-time work, 134

passions, 135–141

pattern recognition, 83, 85

Pepsi, 161–162

Pinduoduo, 101

Pinterest, 92

platform businesses, 107–108

platform network effects, 90–93

political influence, 238–239

Porsche, 99

Porter, Michael, 173, 178, 230, 241n2, 258n1, 259n16

Prevent, 143–144

price(s)

of complements, 68–70, 72–73

customer delight and, 34–35

policies on, 124–127

WTP and, 224–227

product-centric mindset, 40, 48, 51

productivity

compensation and, 147–148

costs and, 157–158, 167

differences in, 157

learning effects and, 167–171

scale and, 157–165

ways to increase, 17–18, 147–149

WTS and, 157–158

professional services firms, 134–135

profitability

brand strength and, 186–187

differences in, 21–28

between industries, 24–26

scale and, 187–188

profit pools, 72–76

Progressive, 230, 235

Quest Diagnostics, 117–122, 230

radio industry, 77–78

Raghunandan, Aneesh, 236

Rajgopal, Shiva, 236

Raksul, 145

Rappi, 96

return on invested capital (ROIC), 21–27

across US industries, 25

of companies in top of S&P 500, 26

in US insurance industry, 24

in various countries, 23

ride-sharing companies, 15, 35, 93–95, 131–133

Roth, Bruce D., 39

Royal National Theatre, 84

Sachdeva, Ankush, 111

Sadun, Raffaella, 174–177

same-side network effects, 109–110

scale

as barrier to entry, 162–164

economies of, 17, 19, 157–165

minimum efficient, 160–162, 165

profitability and, 187–188

Scheier, Mindy, 222–223

segmentation, customer, 111, 208–210

selection effects, 116–117, 141

ShareChat, 111

shareholder capitalism, 235–236, 239

Sheinbaum, Gary, 222–223, 225, 227, 229

Shift Messenger app, 124, 133

Slack, 195–197

Slovakia, 215–216

Snapchat, 92

solar energy, 67–69

Sony, 14, 43–44, 66, 92

Source Global Research, 199

South Korea, 23

Spencer, Phil, 72

Spotify, 70–71

stakeholder capitalism, 235–240

status, 189–190, 193

Stuart, Harborne W., 241n1, 241–242n5

substitutes, distinguishing from complements, 77–85

suppliers

relationships, 16, 143–154

selection of, 149–151

talent, attracting and retaining, 117, 125–129, 131

Taobao, 53–55, 95–96, 106–107

TaskRabbit, 131

Tata Group, 16, 151–152

Tatra banka, 208–211, 213–216

Tesla, 64–65

Throsby, David, 84

TikTok, 92, 101

tipping points, 87–104

TJX Companies, 22

Tmall, 96

Tommy Adaptive, 222–231

Tommy Hilfiger, 19, 222–224, 228, 231

Ton, Zeynep, 120, 121

Topcoder, 131

Toyota Corolla, 51–52, 197

Toyota Production System, 146

trade-offs, 195–202

trend analysis, 83, 85

Uber, 15, 35, 91, 93, 95, 101, 116, 131–133, 140

underdogs, strategies for, 105–112

underinvestment, 207

US insurance industry, 24

Vaaler, Paul, 27

“Value-based Business Strategy” (Brandenburger and Stuart), 241n1, 241n5

value curves, 200–218

value drivers, 14, 18–19, 198–218

value maps, 19, 198–218

Vanguard Group, 42–43

Van Reenen, John, 174

variable costs, 164

Vélez, David, 52

Verizon, 92

Visa, 92, 187

Volkswagen, 143–144

Walmart, 7, 11, 127, 162–163

Wang Wang, 106

Washington Post, 82

WeChat, 93, 192

Wells Fargo, 159

Werk, 134

“What Is Strategy?” (Porter), 241n2, 258n1, 259n16

WhatsApp, 93

Whirlpool, 211–213

Whitman, Meg, 53, 106

Whitwam, David, 212–213

willingness-to-pay (WTP), 6–7, 10–11

willingness-to-sell (WTS), 6–7, 10–11

workforce. See employees

workplace flexibility, 131–142

Xbox, 75

Xiaomi, 149

Yibo, Shao, 53

Yum! Brands, 22

Zara, 230

Zeitler, James, 21