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Foreword
by Perry Marshall x Preface by Richard Koch xiii Preface by Greg Lockwood xvii The Secret Red Thread ixx How to Simplify xxv Part 1 Great Simplifiers 1. The Man Who Democratized Travel 3 Results 10 Key Points 11 2. The Billionaire Who Travels by Bus 12 How Can IKEA Be So Much Cheaper? 13 How IKEA Seduces Its Customers 17 Results 20 Key Points 21 3. The Assembly Line of Food 22 Results 30 Key Points 31 4. Victory Over Big Brother: The Real Story of 1984 33 Which Type of Simplifying is Better? 41 Results 43 Key Points 44 5. The Strategy Simplifies 45 Results 56 Key Points 57 6. Taxi! The Brave New World of Apps 59 Travis Kalanick and Garrett Camp: Uber 60 The Samwer Brothers: Easy Taxi 60 Daniel Ek: Spotify 69 Joe Gebbia: Airbnb 71 Back to Uber: Results 73 Key Points 74 7. The Two Strategies and Their Trade-offs 76 Three Precepts for the Price-Simplifier 79 Two Precepts for the Proposition-Simplifier 80 Making Clever Trade-Offs 81 Virtuous Trade-Offs 83 A Visit to London Zoo 85 Key Points from Part One 90 Conclusion 91 Part 2 How to Simplify 8. Which Type of Simplifier Will You Be? 95 The Attitude Test 96 Scoring 104 The Gap Test 105 The Key Tests 112 Keys in Price-Simplifying 113 Keys in Proposition-Simplifying 114 The Better Skills Test 115 Key Points 120 9. How to Proposition-Simplify 122 Step 1: Easier to Use 124 Step 2: More Useful 129 Step 3: More Aesthetically Appealing 132 Are Free Services Price- or Proposition-Simplifying? 134 Conclusion 136 Key Points 137 10. How to Price-Simplify Part I: Product Redesign 139 How to Spark a Price Revolution 143 Redesign the Product 144 11. How to Price-Simplify Part II: Business System Redesign and Scale Up 153 Redesign the Business System to Transform Your Industry 154 Scale Up 171 Conclusion 172 Key Points for Chapters 10 and 11 172 Part 3 Save The Dinosaurs? 12. Do They Need Saving? 177 Warning Signals Test 180 Key Points 183 13. The Weakness of Strong Firms: Five Bad Reasons Why Managers Don't Simplify 184 The Overhead Trap 185 The Cannibalization Trap 187 The Customer Trap 191 The Complexity Trap 194 The Skills Trap 196 Key Points 199 14. How Market Leaders Can Simplify Without Tears 201 Countering Price-Simplifying 203 Countering Proposition-Simplifying 208 Counter Price- and Proposition-Simplifying 210 Is the Penny Dropping About Acquiring Proposition-Simplifiers? 211 Key Points 212 Part 4 The Rewards of Simplifying 15. Does Price-Simplifying Pay? 215 Ford 216 McDonald's 219 Southwest Airlines 221 IKEA 223 Charles Schwab 225 Honda 227 16. Does Proposition-Simplifying Pay? 231 Amazon 232 Google 238 Apple (the iPod Years) 239 ARM 242 Tetra Pak 243 The Boston Consulting Group (BCG) 245 17. The Success of Simplifying: An Archaeological Dig 248 How Do the Companies Fare in Terms of Increasing Their Market Value? 276 How Do the Companies Fare in Terms of Annual Increase in Value? 256 How Do the Companies Fare in Terms of Outperformance of Their Rivals? 258 Industry-Wide Simplifying 260 Conclusions 263 18. The Limitations, Power, and Glory of Simplifying 267 Are There Any Viable Non-Simplifying Strategies? 268 Simplifying in the Big Picture 275 The Next Steps for Entrepreneurs 280 Next Steps for Corporate CEOs 281 Endnotes 283 Acknowledgments 293 About the Authors 297 Index 299 |
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