ZAG: The Number-One Strategy of High-Performance Brands

The Momentum of Rock

As growth opportunities become clear, scissors companies move through the first unstable state on their road to rock. They may think about adding brands or subbrands, or acquiring other companies. Process begins to replace passion as they codify what worked in the early years. They may consider going public during this period, or bringing in professional managers.

When they do reach rock, they suddenly become dangerous to paper companies, who had paid little attention to them. The paper companies are now motivated to smother the rock companies by matching any new offerings—offerings that may be less disruptive and more like what the paper companies can profit from.

If scissors companies go public during the transition, their ...