He measures winning or losing by the market value of the company. The book ties corporate value to the use of superior business models, and ranks businesses by the ratio of their market value to gross revenue. The latter viewpoint is popular in Silicon Valley. For example, Upside, a high tech business magazine, has been sorting companies by their annual increases in market valuation for years. The leap of faith is sorting out cause and effect, but it is plausible that good business planning can help in market value creation.
Companies can break out of the pack by refuting the common wisdom and embracing new business models.
So it has been from buggy whips and railroads to CD players and Internet browsers, and this is a lesson well worth knowing. He also suggests the idea of an outside-in focus and a more holistic approach to business. Perhaps the most appealing thing about the book is what is not said. The author sorts companies into three groups. This is where the action is.