how to build a star business
The ideal is to transcend normal trade-offs – where for example cost is lowered by reducing some element of performance – by discovering what Lockwood and I call virtuous trade-offs – where you have two good attributes rather than one good and one bad one. Penguin books is an example, when by reducing the price Penguin could sell enough copies of a book to attract the very best authors at a time when only hardbacks featured them. New virtuous trade-offs are always out there, waiting to be unearthed. The best of them are great for customers, great for the firm, and lethal to rivals.