#Co principal definition full

Recently, we dug deeper into these repeatable models so others could learn from their remarkable success. About three-fourths of the SVCs have developed this kind of repeatability. And the last is what we have come to call a repeatable model-a method of applying a companyвЂ™s core assets and greatest strengths to new contexts, thereby generating further growth.Disciplined expansion- adding only one new element at a time- doubles the likelihood of winning. As companies spread out into new regions, new products and new businesses, the odds of success decline with distance from the core. The fourth is disciplined expansion into adjacent markets.Sustained value creators, on average, earn twice as much customer advocacy as competitors. They buy more from you, and they sing your praises to friends and colleagues. Passionate advocates love doing business with you. The third pillar: developing passionate advocates among your customers.Leaders have the opportunity to outperform followers by a factor of two, as measured by return on capital employed. The second pillar is leadership economics.About 95% of SVCs are leaders in their core business. Look closely at the most successful one-tenth of companies, the ones we call sustained value creators, or SVCs.

#Co principal definition full

The first is a strongly defined and well-differentiated core business, brought to its full potential and leading in its market.Fortunately, the five pillars of growth are by now well understood: No company can attain its growth goals without a great strategy.