Summary of Catalyst Code

The Strategies Behind the World's Most Dynamic Companies

Harvard Business Review Press, more...

Catalyst Code
The new model of doing business: Forget one-sided strategies. Follow the multi-sided catalyst approach.

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Rating

8 Overall

8 Applicability

9 Innovation

8 Style

 

Review

Everyone’s keen to know the secrets of successful, fast-growing companies. In response, David S. Evans and Richard Schmalensee look at new ways to bring buyers and sellers together. Companies that act as catalysts combine opportunism, customer service and savvy pricing to create a profitable, flexible business model by assembling audiences, cutting costs or connecting other companies. The authors offer plenty of concrete examples of these strategic combinations – from Diners Club and American Express to Microsoft and Google. Perhaps the one weak point in their theory is that the borders between catalysts and noncatalysts are a bit fuzzy. (A supermarket isn’t a catalyst, but a mall is.) getAbstract recommends this interesting, strategic analysis to managers seeking a thought-provoking look at how to create new, enticing and profitable links.

Summary

Catalysts: From Chemistry to Commerce
For much of the postindustrial era, entrepreneurs and businesses have followed a “one-sided” business model. In the classic example, the consumer enters a store or restaurant, and buys a product or orders a meal with little interest in where the product...
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About the Authors

David S. Evans is vice chairman of an international consulting and expert resource company, and a visiting professor at University College in London. Richard Schmalensee is dean of MIT’s Sloan School of Management.


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