It doesn't matter much where your company sits in its industry ecosystem, nor how vertically or horizontally integrated it is - what matters is its relative 'share of customer value' in the final product or solution, and its cost of producing that value.
Interpretation
The location of a company within its industry is less important than how much value it provides to customers and how efficiently it can produce that value.
Gary Hamel emphasizes that a company's position within its industry and its level of integration are secondary to its ability to deliver value to customers and manage production costs effectively. This perspective challenges traditional views of business success, urging companies to focus on the quality and cost-effectiveness of their offerings rather than their relative industry status.
In practice
During a conference on entrepreneurship, this quote can be used to motivate startups to focus on customer satisfaction.
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