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Focused companies that have a strong, or dominant core and that hit on a repeatable formula for extending their strength to new areas are the breeder reactors of business.

About two thirds of the most successful, sustained-growth companies studied in depth in Beyond the Core have one or two powerful, repeatable formulas, "adjacency machineries" that generate waves of new growth over time. They are constantly refining and adapting this process, moving down a learning curve, and building up competitive advantage.

Finding a repeatable method of moving into new adjacencies, one after the other, has several clear benefits, each of which contributes to competitive advantage. Together, the following benefits constitute a sizable competitive barrier:
  • Learning curve effects
  • Reduced complexity
  • Speed
  • Strategic clarity
  • Ability to "drill down"
More than three-quarters of the successful companies Bain studied had a repeatable formula, and three-quarters of those built their growth formula around insights related to customer behavior, customer segments and customer needs.
Nike
An adjacency athlete
Olam
High growth from repeatability in low-growth markets
   
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