A lecture by Melih Arat – melarat.blogspot.com   The Star PrincipleHow It Can Make You Rich       Richard Koch
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com                 Cash cows• Cash cows are companies with high market  share,...
A lecture by Melih Arat – melarat.blogspot.com                   Dogs• Dogs are the companies that generate barely  enough...
A lecture by Melih Arat – melarat.blogspot.com                 Question marks• Question marks are the companies growing ra...
A lecture by Melih Arat – melarat.blogspot.com                       Stars• Stars are the leaders in high growth markets. ...
A lecture by Melih Arat – melarat.blogspot.com               A Star Business• To be successful, you    • A star business i...
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.comNiche
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.comW.W. Clements, a former CEO and president of the Dr Pepper/7-Up Company, des...
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com                 Compound Interest• Compound interest arises  when interest ...
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.comHow can you find a Star Business
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com• Your ideal product doesn’t exist. (coca cola)• Upmarket/downmarket (Could ...
A lecture by Melih Arat – melarat.blogspot.com
A lecture by Melih Arat – melarat.blogspot.com• Safe vs. Racy (Volvo, Harley Davidson)• Convenience vs. Purity (Nescafe, P...
A lecture by Melih Arat – melarat.blogspot.com• Low vs. High service (capsule hotels, hotels by hours, 7 star  hotels, IKE...
A lecture by Melih Arat – melarat.blogspot.com• Orchestrating a supplier alliance (alibaba.com,  abebooks.com (No: 1 used ...
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10 star principle

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Star Principle
A lecture by Melih Arat

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10 star principle

  1. 1. A lecture by Melih Arat – melarat.blogspot.com The Star PrincipleHow It Can Make You Rich Richard Koch
  2. 2. A lecture by Melih Arat – melarat.blogspot.com
  3. 3. A lecture by Melih Arat – melarat.blogspot.com Cash cows• Cash cows are companies with high market share, generate cash in excess of the amount of cash needed to maintain the business. Their growth rate is slow.
  4. 4. A lecture by Melih Arat – melarat.blogspot.com Dogs• Dogs are the companies that generate barely enough cash to maintain the business market share. These companies are the followers in low growth markets.
  5. 5. A lecture by Melih Arat – melarat.blogspot.com Question marks• Question marks are the companies growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption.
  6. 6. A lecture by Melih Arat – melarat.blogspot.com Stars• Stars are the leaders in high growth markets. They provide increasing and higher returns. They are not as big as Cash Cows, however they are much and more profitable than the Cash Cows.
  7. 7. A lecture by Melih Arat – melarat.blogspot.com A Star Business• To be successful, you • A star business is the should start a star leader in its market business, or be niche; and the market associated by a star niche is growing fast, at business. least 10 per cent a year.
  8. 8. A lecture by Melih Arat – melarat.blogspot.com
  9. 9. A lecture by Melih Arat – melarat.blogspot.comNiche
  10. 10. A lecture by Melih Arat – melarat.blogspot.com
  11. 11. A lecture by Melih Arat – melarat.blogspot.com
  12. 12. A lecture by Melih Arat – melarat.blogspot.com
  13. 13. A lecture by Melih Arat – melarat.blogspot.com
  14. 14. A lecture by Melih Arat – melarat.blogspot.comW.W. Clements, a former CEO and president of the Dr Pepper/7-Up Company, described the taste of Dr Pepper as one-of-a-kind, saying "Ive always maintained you cannot tell anyone what Dr Pepper tastes like because its so different. Its not an apple, its not an orange, its not a strawberry, its not aroot beer, its not even a cola. Its a different kind of drink with a unique taste all its own."[2]
  15. 15. A lecture by Melih Arat – melarat.blogspot.com
  16. 16. A lecture by Melih Arat – melarat.blogspot.com Compound Interest• Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding.• A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per year would have a balance of $1200 at the end of the first year, $1440 at the end of the second year, and so on.
  17. 17. A lecture by Melih Arat – melarat.blogspot.com
  18. 18. A lecture by Melih Arat – melarat.blogspot.com
  19. 19. A lecture by Melih Arat – melarat.blogspot.com
  20. 20. A lecture by Melih Arat – melarat.blogspot.com
  21. 21. A lecture by Melih Arat – melarat.blogspot.com
  22. 22. A lecture by Melih Arat – melarat.blogspot.com
  23. 23. A lecture by Melih Arat – melarat.blogspot.com
  24. 24. A lecture by Melih Arat – melarat.blogspot.com
  25. 25. A lecture by Melih Arat – melarat.blogspot.com
  26. 26. A lecture by Melih Arat – melarat.blogspot.com
  27. 27. A lecture by Melih Arat – melarat.blogspot.comHow can you find a Star Business
  28. 28. A lecture by Melih Arat – melarat.blogspot.com
  29. 29. A lecture by Melih Arat – melarat.blogspot.com
  30. 30. A lecture by Melih Arat – melarat.blogspot.com
  31. 31. A lecture by Melih Arat – melarat.blogspot.com
  32. 32. A lecture by Melih Arat – melarat.blogspot.com
  33. 33. A lecture by Melih Arat – melarat.blogspot.com
  34. 34. A lecture by Melih Arat – melarat.blogspot.com• Your ideal product doesn’t exist. (coca cola)• Upmarket/downmarket (Could you create a luxury segment of the market?) (Starbucks)• Affordable Luxuries (Lexus)• Mass market vs. Niche (Casio vs. Frank Muller)• Bigger Product vs. Smaller Product (SUV, Netbook)• Emotional vs.Functional (Belgo, Filofax)• Healtier vs. Tempting (Wholefoods vs. Gourmet Burger)
  35. 35. A lecture by Melih Arat – melarat.blogspot.com
  36. 36. A lecture by Melih Arat – melarat.blogspot.com• Safe vs. Racy (Volvo, Harley Davidson)• Convenience vs. Purity (Nescafe, Pure Jamaican Coffee)• Saving time vs. Extending time (mcdonald’s vs. Slowfood)• Fixed vs. Mobile (Vienna Concert Hall vs. Ipod)• Unisex vs. Single Sex (B-Fit vs. Sports Universe)• Masculine vs. Feminine (Angelina Jolie)• Go gay (gay gym)• Go grey (universities for those 50+, oldcity club)
  37. 37. A lecture by Melih Arat – melarat.blogspot.com• Low vs. High service (capsule hotels, hotels by hours, 7 star hotels, IKEA)• Personalized vs. untailored (Dell, HP)• Bundled vs. Focus (cancer hospitals, McCoffee)• Expert vs. inexpert users (Photoshop, Picnik)• Centralized vs. Decentralizde use (Hardisk vs. cloudcomputing)• Total cost vs. initial price (Toyota vs. Fiat)• First Place vs. Third Place (move the location of service)(university at home)• Owned vs. rented vs. fractionall owned (Netjet-fractionally owned private jets)
  38. 38. A lecture by Melih Arat – melarat.blogspot.com• Orchestrating a supplier alliance (alibaba.com, abebooks.com (No: 1 used books site)• Go green (eco IQ magazine, organic milk, hybrid cars)

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