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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
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Focus summary
The Future of Your Company Depends on It
19 mins
Brief summary
Focus by Al Ries is a marketing book that argues narrow focus is the key to success in today's competitive market. Using case studies, Ries shows how companies can establish themselves as leaders in specific niches, rather than trying to compete with big players.
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Focus
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Key idea 1 of 9
The primary objective of companies is usually growth.
Whether it’s a family-run bakery wanting to open a second location or a massive fast-food company aiming for total market domination, it seems that the one thing common to all businesses is their desire to grow.
But have you ever questioned why companies are so fixated on growth?
One reason is that growing will give them cost advantages.
Certain company costs are fixed – they don’t change if the company increases its production – so the costs per unit decrease as the amount of units produced increases.
For example, a bakery has variable costs for flour, yeast and other ingredients, and they vary according to the amount of bread it produces. It also has fixed costs, like the money it spent on its oven.
Let’s say the oven cost $500 and the ingredients for one loaf of bread cost $1. If the bakery produces 100 loaves of bread, the fixed costs per loaf of bread are $500/100 = $5. So with the variable costs of $1, one loaf of bread would cost the bakery $6 if the total amount of loaves produced was 100. If the amount of loaves produced was 500, the costs for one loaf would sink to $2.
Obviously, such cost advantages give companies a competitive edge. With lower costs, their products can be sold at more attractive prices, thus more customers are likely to buy them.
Another reason that companies seek growth is that managers want to exploit the benefits that size brings (e.g., cost advantages). Naturally, managers want their company to make big profits, so it’s only logical they’d aim to increase revenues and decrease costs.
This is why managers make growth the primary objective of companies. Take, for example, Wayne Calloway, who said during his time as CEO of PepsiCo that they’re fully committed to high (15 percent) long-term growth. To this end, PepsiCo focused on growth, and Calloway and his predecessors worked towards this goal by buying a number of companies.
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What is Focus about?
Focus (1996) describes how corporations in America lose profits by focusing on growth. It explains what the leading management strategies of corporations are and why they are wrong. Additionally, it elaborates on what strategies corporations should adopt instead, and how they can focus their company for greater success.
Focus Review
Focus (1996) by Al Ries is a captivating book that explores the power of narrowing down our focus to achieve success. Here's why this book is definitely worth reading:
- Packed with practical strategies and real-life examples, it provides actionable advice that can help us excel in both our personal and professional lives.
- By emphasizing the importance of finding a narrow niche and building expertise in it, the book offers a refreshing approach to standing out in a crowded marketplace.
- Through its compelling insights into consumer behavior and marketing, Focus keeps readers engaged and ensures that the content is anything but boring.
Who should read Focus?
- Anyone managing a company that they want to perform better
- Anyone interested in why certain companies succeed and others fail
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Focus FAQs
What is the main message of Focus?
The main message of Focus is that focus is the key to success and achieving your goals.
How long does it take to read Focus?
The reading time for Focus varies depending on the reader's speed. However, the Blinkist summary can be read in just 15 minutes.
Is Focus a good book? Is it worth reading?
Focus is worth reading because it provides valuable insights on how to improve your focus and achieve greater results in life.
Who is the author of Focus?
The author of Focus is Al Ries.
What to read after Focus?
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