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Strategy That Works by Cesare R. Mainardi, Paul Leinwand

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5

Cut Costs to Grow Stronger

Ever been to the Danaher Open? Watched the Danaher 500 on TV? No, you haven’t. Industrial conglomerate Danaher doesn’t sponsor big-time sporting events. That’s not who they are. Nor does it conduct corporate or image advertising of any sort, and its PR is handled by investor relations. It also does without some other things you might expect to find at a company its size—like expensive office furnishings, even for its top executives.

Danaher doesn’t bother with activities that don’t directly support its unique value proposition—its “way to play”—in the market. Instead, it invests where its identity is, as a science and technology leader comprised of well-run businesses in selected specialized industries. It pours money, ...

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