Simplify - Richard Koch

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      Entrepreneur Press, Publisher

      Cover Design: Andrew Welyczko

      Production and Composition: Ponderosa Pine Design

      First published in Great Britain in 2016 by Piatkus, an imprint of the Little, Brown Book Group.

      Richard Koch and Greg Lockwood have asserted their right to be identified as authors of this Work.

      © 2016 Richard Koch and Greg Lockwood

      U.S. edition cover design © 2016 by Entrepreneur Media, Inc.

      Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Business Products Division, Entrepreneur Media Inc.

      This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

      Library of Congress Cataloging-in-Publication Data

      Names: Koch, Richard, 1950- author. | Lockwood, Greg, author.

      Title: Simplify: how the best businesses in the world succeed / Richard Koch, Greg Lockwood; foreword by Perry Marshall.

      Description: First American Edition. | Irvine: Entrepreneur Press, 2016. | Originally published: London: Piatkus, 2016.

      Identifiers: LCCN 2016029110 | ISBN 9781613083543 (e-book)

      Subjects: LCSH: Success in business. | Leadership. | BISAC: BUSINESS & ECONOMICS / Small Business. | BUSINESS & ECONOMICS /

      Development / Business Development. | BUSINESS & ECONOMICS / Leadership. |

      BUSINESS & ECONOMICS / Advertising & Promotion.

      Classification: LCC HF5386 .K7634 2016b | DDC 658.4/012--dc23

      LC record available at https://lccn.loc.gov/2016029110

      20 19 18 17 16 10 9 8 7 6 5 4 3 2 1

       For Christina and Zoe

      – Greg

       For Matthew, Jamie, Justin, and Peter

      – Richard

      Contents

       5 The Strategy Simplifiers

       Results

       Key Points

       6 Taxi! The Brave New World of Apps

       Travis Kalanick and Garrett Camp: Uber

       The Samwer Brothers: Easy Taxi

       Daniel Ek: Spotify

       Joe Gebbia: Airbnb

       Back to Uber: Results

       Key Points

       7 The Two Strategies and Their Trade-offs

       Three Precepts for the Price-Simplifier

       Two Precepts for the Proposition-Simplifier

       Making Clever Trade-Offs

       Virtuous Trade-Offs

       A Visit to London Zoo

       Key Points from Part One

       Conclusion

      PART TWO: HOW TO SIMPLIFY

       8 Which Type of Simplifier Will You Be?

       The Attitude Test

       Scoring

       The Gap Test

       The Key Tests

       Keys in Price-Simplifying

       Keys in Proposition-Simplifying

       The Better Skills Test

       Key Points

       9 How to Proposition-Simplify

       Step One: Easier to Use

       Step Two: More Useful

       Step Three: More Aesthetically Appealing

       Are Free Services Price- or Proposition-Simplifying?

       Conclusion

       Key Points

      10 How to Price-Simplify Part I: Product Redesign

       How to Spark a Price Revolution

       Redesign the Product

      11 How to Price-Simplify Part II: Business System Redesign and Scale Up

       Redesign the Business System to Transform Your Industry

       Scale Up

       Conclusion

       Key Points for Chapters 10 and 11

      PART THREE: SAVE THE DINOSAURS?

      12 Do They Need Saving?

       Warning Signals Test

       Key Points

      13 The Weakness of Strong Firms: Five Bad Reasons Why Managers Don’t Simplify

      

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