UPS

Strategic Concepts & Mechanics

Signature MoveIverson: Four Layers Max, Then Stop Building Hierarchy Cornerstone MoveIncentives as Architecture, Not Decoration Strategic PatternStay Half a Step Ahead, Not a Mile Capital StrategyCash Reinvested for Domination Not Dividends Cornerstone MoveDominate One Small Thing Before Growing Signature MoveSchwab: Split Half the Profit and Watch It Multiply Risk DoctrineTen-Million-Dollar Education, Not Termination Signature MoveLemann's 3G: Buy the Brewer, Install the Meritocracy Signature MovePatterson: Educate the Customer Into Needing You Cornerstone MoveDecentralize Everything Except Culture Signature MovePrice: Lowest Price as Moral Crusade, Not Marketing Tactic Risk DoctrineCalculated Bullets Before Cannonballs Competitive AdvantageCulture as the Only Uncopiable Moat Signature MoveKelleher: Distill Strategy to Doing, Not Planning Cornerstone MovePromote From the Ranks, Never Import Generals Identity & CulturePermanent Dissatisfaction as Fuel Operating PrinciplePower as Potential, Not Guarantee Operating PrincipleCrafted Not Designed — Strategy Through Experimentation Mental ModelProcess Power: Complexity Makes Imitation Take Decades Mental ModelSurplus Leader Margin: Price to Zero-Profit the Follower Strategic ManeuverConvert Variable Costs to Fixed Costs at Scale Strategic PatternCounter-Positioning Is Partial — Stack Another Power Mental ModelSwitching Costs Only Pay on the Second Sale Mental ModelOnly Seven Moats Exist — Name Yours or You Have None Mental ModelBenefit Without Barrier Is Just a Head Start Structural VulnerabilityFive Stages of Counter-Positioned Incumbent Grief Mental ModelThe Incumbent's Strength IS Your Barrier Competitive AdvantageAgency and Cognitive Bias Amplify the Barrier Mental ModelNetwork Tipping Points Make Late Entry Unthinkable Strategic PatternStep-Function Ascent, Not Linear Growth Strategic ManeuverCounter-Position by Making the Incumbent's Best Move Suicidal Mental ModelEvery Power Starts with Invention, Not Analysis Mental ModelStatics Tell You the Destination; Dynamics Tell You the Route Mental ModelIndustry Economics × Competitive Position = Power Intensity Risk DoctrineCollateral Damage Decays Over Time Decision FrameworkStrategically Separate Businesses Need Separate Strategies Decision FrameworkCornered Resource Must Be Sufficient Alone

Primary Evidence

"Ron Wallace, author of Leadership Lessons from a UPS Driver writes, “We promote from within to ensure that the company can pass on our legacy and culture seamlessly from one generation to the next.”"

Source:Intelligent Fanatics Project

"In the Netflix example we see a feature of Scale Economies that recurs in many technology firms: a single fixed cost which declines per unit as it is prorated over higher and higher volumes. Beyond fixed costs, Scale Economies emerge from other sources as well. To name a few: Volume/area relationships. These occur when production costs are closely tied to area, while their utility is tied to volume, resulting in lower per-volume costs with increasing scale. Bulk milk tanks and warehouses would serve as examples. Distribution network density. As the density of a distribution network increases to accommodate more customers per area, delivery costs decline as more economical route structures can be accommodated. A new entrant competitor to UPS would face this difficulty. Learning economies. If learning leads to a benefit (reduced cost or improved deliverables) and is positively correlated with production levels, then a scale advantage accrues to the leader. Purchasing economies. A larger scale buyer can often elicit better pricing for inputs. For example, this has helped Wal-Mart."

Source:7 Powers

Appears In Volumes

Intelligent Fanatics Project 7 Powers