{"id":2092183,"date":"2018-11-13T13:23:09","date_gmt":"2018-11-13T07:53:09","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2092183"},"modified":"2018-11-13T13:23:09","modified_gmt":"2018-11-13T07:53:09","slug":"book-review-the-discipline-of-market-leaders","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2018\/11\/13\/book-review-the-discipline-of-market-leaders\/","title":{"rendered":"Book Review: The Discipline of Market Leaders"},"content":{"rendered":"

The Discipline of Market Leaders<\/em> (Amazon<\/a>,) is about the importance of focusing on either one of cost, innovation, or service.<\/p>\n

A company cannot be everything for everybody. It can be a highly efficient low-cost provider of a utility, or it could be a high-cost provider of innovative products, or it could be so close to its customers that they stick with it for its superior service.
\n\"\"<\/a><\/p>\n

The general message of the book could be useful for investors in old-economy stocks. Figuring out how a company scores along these drivers of value could help in evaluating the robustness of the “moat.”
\n\"\"<\/a><\/p>\n

However, things change. Consider this chart from Understanding Abundance<\/a>:
\n\"\"<\/a>
\nAlong with cost\/innovation\/service, in the age of abundance, companies need to also choose between being a “utility” business or a “pointy” business. The drivers of value have shifted.<\/p>\n

All said, the book was published in the late-90’s and hasn’t aged well. The examples are dated and some of the exemplar companies have gone bankrupt.<\/p>\n

Recommendation: Skip it.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Discipline of Market Leaders (Amazon,) is about the importance of focusing on either one of cost, innovation, or service. A company cannot be everything for everybody. It can be a highly efficient low-cost provider of a utility, or it could be a high-cost provider of innovative products, or it could be so close to … <\/p>\n","protected":false},"author":2,"featured_media":2092193,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4023],"tags":[3751,3761],"class_list":["post-2092183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-book-reviews","tag-book","tag-review","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2092183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2092183"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2092183\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2092193"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2092183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2092183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2092183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}