Companies must continually update their business models, strategies,
and communications to respond to the explosion of consumer options.
Although the theory of cumulative advantage makes sense in predictable industries, consumer behavior tends to shift continuously. Companies need to balance the power of cumulative advantage with the need to
refresh their approach on managing consumers. One of the strategies
in this front is to leverage company’s core capabilities in a new format
accentuating to work with consumers. LEGO Group developed its
cumulative advantage by mining the emotional perceptions of consumers with colorful blocks, which delivers the legendary message to young managers that the value of a brand can be built as a part of someone’s
identity. Such market decision delivers a powerful competitive advantage
for the companies. Managerial ability to take a purely rational approach
to decision-making in marketing is often suffered by lack of clarity within
the organization, and insuffcient information about the consumer perceptions on need and associated values. The managerial judgment is therefore directed by a set of systematic biases within the organization and around the market.
This book is divided into nine chapters across three parts comprising the role of consumers, market and organization, and the functional strategies