Title - Simplify the business, market and marketing. Tags - simplify influentialwriting businessideas
In 1968, Boston Consulting Group (BCG) turned libraries of information on business strategy into a tiny model: The Boston Matrix.
The model was developed to help large industrial corporations determine the overall prospects for various business units, which in turn helped them decide whether to invest or divest in each one.
One of the reasons for its success is that The Boston Matrix is easily understood by everyone, so it can be used as a decision-making tool, and aid consistently profitable actions from everyone in the organisation.
This is an example of the two major benefits of simplifying:
- It can lead to high growth in a business and market
The Boston Matrix helped BCG become a huge consulting firm with a big market.
- It can lead to high margins
The model is so simple that BCG could train inexperienced graduates how to use it (low production costs) and so valuable to the market that it could charge a princely sum (high prices). Low cost and high price = big margins.
I have also written (202111021814) about how the most influential writer’s use oversimplification in their personal narrative (202104031201) to attract, retain and multiple customers (and other benefits: 202104031201). This suggests that it’s valuable to simplify the business, the market, AND the marketing that connects the two.
It also occurs to me that simplification could be a valuable component of a business built to sell: 202206061137.
[#koch2016simplify]: Richard Koch and Greg Lockwood (2016): Simplify: How the Best Businesses in the World Succeed, Piatkus.
[#kiechel2010lordsofstrategy]: Walter Kiechel (2010): Lords of Strategy: The Secret Intellectual History of the New Corporate World, Harvard Business Review Press.