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The Profit Zone : How Strategic Business Design Will Lead You to Tomorrow's Profits

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Title: The Profit Zone : How Strategic Business Design Will Lead You to Tomorrow's Profits
by Adrian Slywotzky, David J. Morrison, Bob Andelman
ISBN: 0-8129-3304-4
Publisher: Three Rivers Press
Pub. Date: 26 February, 2002
Format: Paperback
Volumes: 1
List Price(USD): $15.00
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Average Customer Rating: 4.71 (38 reviews)

Customer Reviews

Rating: 5
Summary: A MUST HAVE!!
Comment: EXCELLENT BOOK! One of thee best business books. The book is well structured. All the strategic business models are well detailed with real world applications. Clearly illustrates how the most formidable business gurus have used various strategy models to migrate to profitability and isolate competitors. You will go into the realm of overpowering companies such as Microsoft, Intel, Coca Cola, to name a few.
When you have a book that is highlighted and filled with scribbled notes in almost every page than you know you have a winner. Can hardly wait for the next book by these two great authors.

Rating: 5
Summary: Top
Comment: Be sure that if you don't like this book, it's not because of the bad contents. Remarkable book, must read.

Rating: 4
Summary: Get into the profit zone
Comment: The Profit Zone is an intriguing read. This book is the precursor to Value Nets, but is still a great read. The book starts out by getting you focused on your customer, but quickly switches gears to ensuring that you are capturing profit for the value that you are providing. If your industry is changing quickly and margins are falling this book is well worth a read!

One of the most useful sections of this book is the one covering different profit models. The book covers 22 different profit models. For example, Product Pyramid Profit, which is basically having products tailored to customers desires that cover customer income and preferences. An example of this would be GM, which sells cars, but varies features and prices (Chevy to Cadillac) to cover a range of customer incomes.

One of the revelations of this book is that many of these profit models may have a five to seven year life (or shorter). Having a range of profit models allows the reader to see how to apply several profit models or understand transitions from profit model to another.

The Profit Zone is basically broken in three sections:

The first lays out the importance of the customer and the component that make up a business model. See Value Net review for more details, but basically value proposition, scope, profit capture and strategic control.
The second section is extremely useful in that is shows business that have due to changes in their industry or customers have had to recreate their profit model. Companies such as GE, Microsoft, Charles Schwab as well as others are used as case studies in business design reinvention.
The third section is a toolkit for apply "profit zone" thinking to your business.

The Profit Zone does a great job in highlighting that business is always changing and the areas where you can make money and sustain high profits are changing with it. The profit models in this book are further developed in a follow on book called Profit Patterns. Profit Patterns greatly expands the list of profit models and looks at them in greater detail.

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