More from @pmarca
A tweetstorm from
5 years ago — @pmarca
1/Really interesting business experiment starting at Procter & Gamble:
2/P&G "will sell or exit 90-100 mostly minor brands in bold attempt to refocus the business behind its 70-80 remaining best-selling brands".
3/"'Less will be much more,' P&G CEO told analysts. 'The objective is growth... We're going to be much more agile and adaptable.'"
4/I think a majority of big company CEOs think they should do this in their own companies. But few ever pull the trigger. Too scary.
5/A common thing you hear at big companies is "SKU proliferation" -- sheer # of items for sale. Bloats organization & makes action harder.
6/Steve Jobs legendarily used strategy of cutting brands & SKUs for Apple's turnaround. But few CEOs have followed suit in last 15 years.
7/Like Steve, AG Lafley at P&G is one of the most respected CEOs in the world. If this works for P&G as well as it did at Apple...
8/...I think the odds go way up that many big company CEOs will pull the trigger on the same strategy. Could be transformative for business.
9/The stakes are high: Whether, and how, big companies will be able to grow their businesses & their # of workers in the future.
10/Further, whether/how big companies will invest in new product creation in the future. Paring the old can be staging for creating the new.