1008% 2% 81% 9%
Financial Physical Intangible Human
Share of Total
* not a legal business mo
“Many restaurant managers
such as 99
cents or a
number communicate a
13 CRIB NOTES Notes on a reminder that there is no such thing as
corporate DNA, the importance of building an agile company, the
cost of implementing bad ideas versus the cost of missing good
opportunities — plus other observations and ideas in this issue.
HOW QUALITY DRIVES THE RISE AND FALL OF HIGH-TECH PRODUCTS
The conventional wisdom is that products that have a strong established
base of users can often trump higher-quality alternatives. But recent
research suggests otherwise.
— Gerard J. Tellis, Eden Yin and Rakesh Niraj
3. 8 years =
average length of
time before a switch
in market share
leadership in high-tech
THE BIG DIFFERENCE A PENNY MAKES When setting a price for a
consumer product, should you select a price that ends in 99 cents —
or instead choose a round dollar amount?
— Martha E. Mangelsdorf
THE BUSINESS MODELS INVESTORS PREFER New research suggests
that the stock market particularly values business models based on
innovation and intellectual property.
— Peter Weill, Thomas W. Malone and Thomas G. Apel
IN PRAISE OF DISSIMILARITY Sometimes products and markets that
seemingly have nothing in common “taxonomically” can have “thematic
similarity,” which may open up important business opportunities.
— Michael Gibbert and Martin Hoegl
“What do Intel and
McAfee have in
common? Ebay and
Skype? Louis Vuitton
and Al Gore’s Climate
CAN MARKETING LIFT STOCK PRICES? A study finds that certain market-
ing techniques can influence a company’s stock market valuation — if the
techniques increase customer lifetime value.
SUMMER 2011 MIT SLOAN MANAGEMENT REVIEW 7