Tesco

Strategic Concepts & Mechanics

Signature MoveOblique Messaging for Direct Truths

Cornerstone MoveFlip the Frame Before Solving the Problem

Signature MoveClever and Lazy Beats Clever and Busy

Competitive AdvantageBrands as Non-Shitness Guarantees

Operating PrincipleSerendipity as Engineerable Asset

Signature MoveKill Anxiety Before Building Preference

Signature MoveSatisficing Over Maximising as Default Lens

Strategic PatternSocial Embarrassment as Purchase Governor

Cornerstone MoveFind the Missing Third That Logic Won't Tell You

Signature MoveTransaction Cost as Hidden Competitor

Competitive AdvantageOverheard Signal Beats Direct Message

Decision FrameworkPath Dependency Precedes Brand Choice

Cornerstone MoveSteal From Adjacent Fields, Not Your Own

Risk DoctrineNaked Greed Destroys Brand Value

Strategic PatternSmall Can Charges More Than Big Can

Identity & CultureIdeals Outlive Strategies

Signature MoveThirteen-Hour Meeting as Onboarding Ritual

Relationship LeverageFoxconn's Loss-Leader-to-Lock-In Playbook

Risk DoctrineTacit Knowledge as Accidental Export

Competitive AdvantageApple Squeeze: Invaluable Experience Over Margin

Identity & CultureVerbal Jujitsu Procurement Culture

Signature MoveDesign the Impossible Then Manufacture the Impossible

Signature MoveFifty Business Class Seats Daily to Shenzhen

Operating PrincipleZero Inventory as Theological Doctrine

Strategic PatternUnconstrained Design Not Cost Arbitrage

Cornerstone MoveSecret $275 Billion Kowtow to Keep the Machine Running

Signature MoveSilk Tie Competitions to Train Negotiators

Cornerstone MoveScrew It, iTunes for Windows

Cornerstone MoveBuy the Machines, Own the Factory Floor Without Owning a Factory

Signature MoveDrive Off the Cliff to Prove the Brakes Don't Work

Cornerstone MoveTrain Everyone Then Pit Them Against Each Other

Risk DoctrineRule By Law as Corporate Leash

Decision FrameworkBig Potato Small Potato: Positional Power Over Fairness

Primary Evidence

"To use a phrase popularised in a famous FT article: great brands are often built obliquely. They are generally a by-product of something (ideals, vision, focus) and not a product of anything. Saying that you build a brand by setting out to build a brand is a little like saying that you can end poverty by giving poor people money. It doesn’t work like that. So in building a brand, don’t necessarily start by looking at the brand. Instead ask a broader marketing question: how can I turn human understanding into business advantage? This may mean that you start with the transaction and work back. It may mean you look at changing behaviour first and let perception follow. It may mean you have good business ideas and then brand them (Tesco have been masters of this)."

Source:Rory Sutherland

"Tim Cook had once described inventory as “fundamentally evil,” likening electronics to dairy products that might spoil. Another time he said, “I’d prefer to be able to talk inventories in terms of hours, not days.” The results showed this was not a mere aspiration. Apple had 2.5 times better inventory turns than Nokia or Tesco, a grocer lauded for its efficiency, and it was 12 times better than Coca-Cola."

Source:Apple in China

Appears In Volumes

Rory Sutherland Apple in China