“Profit Patterns” is a book written by Adrian J. Slywotzky, David J. Morrison, Ted Moser, Kevin A. Mundt, and James A. Quella. The book explores the different ways that companies can create and sustain profitable growth by identifying and leveraging specific profit patterns. These profit patterns include strategies such as creating a new market, becoming a “must-have” supplier, and creating a “category king.” The book is interesting for product leaders, product managers, and entrepreneurs because it provides practical insights and actionable strategies for creating and capturing value in the marketplace. It also helps to understand how to identify and create profitable growth opportunities by recognizing and leveraging various profit patterns. The authors illustrate how these profit patterns apply to a wide range of industries and business models and how to apply them in practice.
The book “Profit Patterns” by Adrian J. Slywotzky, David J. Morrison, Ted Moser, Kevin A. Mundt, and James A. Quella provides a framework for identifying and leveraging different profit patterns to create and sustain profitable growth. This framework is based on the idea that there are a limited number of ways that companies can create value, and that by understanding and leveraging these ways, companies can achieve profitable growth.
The framework includes the following key elements:
- Profit Patterns: The book identifies 30 different profit patterns that companies can use to create and capture value in the marketplace. These patterns include strategies such as creating a new market, becoming a “must-have” supplier, and creating a “category king.”
- Value Chain Analysis: The book provides a method for analyzing a company’s value chain, which is the series of activities that a company performs to create and deliver value to its customers. This analysis helps to identify the specific activities and assets that are contributing to the company’s profitability.
- Value Curve Analysis: The book provides a method for analyzing a company’s value curve, which is a graph that shows how a company’s profitability changes as it moves along its value chain. This analysis helps to identify the specific activities and assets that are driving the company’s profitability.
- Value Mapping: The book provides a method for mapping a company’s value proposition, which is the unique value that a company provides to its customers. This mapping helps to identify the specific activities and assets that are contributing to the company’s value proposition.
- Action Planning: The book provides guidance on how to use the information from the above analyses to develop an action plan for achieving profitable growth. This includes identifying specific actions that can be taken to leverage the company’s existing strengths, as well as identifying areas where the company can improve.
The framework is a comprehensive and structured method that helps companies to understand their business, see the opportunities and challenges they face, and develop a plan to achieve profitable growth. The authors illustrate how these concepts apply to a wide range of industries and business models and how to apply them in practice with real-life cases.
Examples of patterns among the 30 from the book
These patterns include strategies such as creating a new market, becoming a “must-have” supplier, and creating a “category king.” Some examples of profit patterns that may be useful for product leaders, product managers, and entrepreneurs include:
- Creating a new market: This pattern involves identifying a new market opportunity and creating a product or service that meets the needs of that market. For example, a company creates a new market for organic products by introducing a line of organic baby food, A company creates a new market for electric cars by introducing a line of affordable electric vehicles.
- Becoming a “must-have” supplier: This pattern involves positioning a company’s product or service as essential to the operations of its customers. For example, a company becomes a “must-have” supplier of enterprise software by developing a comprehensive suite of tools that businesses need to run their operations, A company becomes a “must-have” supplier of mobile payment solutions by developing a platform that enables seamless transactions across a wide range of devices and platforms.
- Creating a “category king”: This pattern involves creating a product or service that is so superior to existing offerings that it becomes the dominant player in its category. For example, a company creates a “category king” in the field of home security by introducing a line of advanced home security systems that are easy to install and use, A company creates a “category king” in the field of fitness tracking by introducing a line of wearable devices that are more accurate and user-friendly than existing options.
- Creating a virtual company: This pattern involves outsourcing non-core activities to specialized partners and creating a virtual company, which can be more flexible and efficient. For example, a company creates a virtual company by outsourcing production to a network of manufacturers and focusing on product design, marketing, and sales.
- Building a network: This pattern involves creating a network of complementary partners to provide a complete solution to customers. For example, a company builds a network of partners to provide an end-to-end solution for online retail, including website development, inventory management, and fulfillment.
- Creating a platform: This pattern involves creating a platform that enables other companies to build products and services on top of it. For example, a company creates a platform for mobile payments that enables other companies to develop apps and services that use the platform for transactions.
- Leveraging a brand: This pattern involves leveraging the strength of a company’s brand to create new products and services. For example, a company leverages its brand in the field of fashion to create a line of home decor products.
- Creating a niche: This pattern involves focusing on a specific segment of the market and creating a product or service that meets the needs of that segment. For example, a company creates a niche in the field of organic food by focusing on gluten-free products.
- Creating a bundle: This pattern involves bundling together complementary products and services to create a more valuable offering for customers. For example, a company creates a bundle of services that includes a mobile phone, data plan, and streaming service.
- Creating a subscription: This pattern involves creating a product or service that is offered on a subscription basis, which can create a recurring revenue stream. For example, a company creates a subscription-based service for online storage that enables customers to store and access their files from any device.
These are just a few examples of the many profit patterns discussed in the book. The book provides a detailed analysis of each pattern, including examples of companies that have successfully leveraged that pattern, and guidance on how to apply it in practice.
Adrian J. Slywotzky, David J. Morrison, Ted Moser, Kevin A. Mundt, and James A. Quella
Adrian J. Slywotzky, David J. Morrison, Ted Moser, Kevin A. Mundt, and James A. Quella are authors and business consultants.
Adrian J. Slywotzky is a globally recognized expert in strategy, innovation, and growth. He is a founding partner of the consulting firm Value Strategy Group and the author of several books, including “The Profit Zone” and “The Art of Profitability.”
David J. Morrison is a senior advisor at Value Strategy Group and co-author of “The Art of Profitability” with Adrian J. Slywotzky. He is also a management consultant and has worked with a wide range of companies in various industries.
Ted Moser is a partner of Value Strategy Group, and he has worked with a wide range of companies in various industries. He is also an adjunct professor at the Kellogg School of Management at Northwestern University.
Kevin A. Mundt is a partner at Value Strategy Group and has worked with a wide range of companies in various industries. He is also a contributing author to “The Art of Profitability” and “Profit Patterns”
James A. Quella is a partner at Value Strategy Group, and has worked with a wide range of companies in various industries. He is also a contributing author to “Profit Patterns”
All of them have extensive experience in working with companies to help them achieve profitable growth by identifying and leveraging specific profit patterns. Their work is widely cited and respected in the business community.
