Let Go To Grow: Escaping the Commodity Trap

1. Grow to Build Profits, Not Just Revenues

Deregulation, globalization, and the Internet are fueling the growth of commoditization in just about every industry. We chose our title because we believe that to grow profitably, you must let go of traditional control mechanisms and organizational practices typified by the common value "chain." Instead, you need to open up your business by building and participating in value webs, where value is built by a number of companies coordinating their individual capabilities to create a whole new business ecosystem.

Value webs are very different from the value chains that rely on a company's own organization and tightly controlled contracts with suppliers. They are dynamic linkages across firms that adhere ...