3 Rules for Understanding How Value Leads to Better Performance

A big part of why we say a non-price position is a material cause of exceptional performance—we found that when exceptional companies abandoned a non-price position, their performance subsequently suffered. For example, in the appliance industry, Maytag delivered a two-decade run of superior profitability that ended in 1986. Its non-price position was defended by a painstakingly constructed combination of product excellence, effective advertising, and high-touch distribution . . .

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