Let Go To Grow: Escaping the Commodity Trap

10. Practical Implementation of the Component Business Model

The analysis and recommendations that we have presented in the preceding chapters are derived from real-world practice, especially lessons from the companies that have set the pace for profitable growth while sustaining their competitive edge. As with any such analysis, we run the risk of making it look too easy, as if, say, the leaders of Southwest, FedEx, or Wal-Mart woke up one morning and said, "Hey, let's componentize the business! Then we can build a platform too." There is just such a sense of instant success in business books. Obviously, however, that is not the reality. Consider Toyota's legendary kanban system, the core of the just-in-time inventory management that underlies ...