Description
Book SynopsisCompanies around the world turn to MIT''s Jonathan Byrnes for one reason: he can figure out where the profit is. He shows them which customers and businesses are cash cows, and which efforts are just a drain on resources. Most astonishingly, in each case he finds that roughly 40% of his client''s businesses are unprofitable.
We are transitioning from an era of mass markets to the Age of Precision Markets. Before, companies sought to distribute their products as widely as possible using arm''s-length customer relationships. Broad metrics like aggregate revenues and costs were adequate. But today companies form different relationships with different sets of customers. Successful businesses create competitive advantages and sustained profitability by developing innovative relationships and new types of value. This is a double-edged sword: if customers are matched with the right relationships, sales and profits soar...but if they are matched poorly, profitability plunges.
