The New Law of Demand and Supply
IN THIS SUMMARY
In his seminal treatise, The Wealth of Nations, Adam Smith set down the law of supply and demand, and while he did not emphasize supply over demand, during the ensuing 19th and 20th centuries, economists and businesses did. Kash believes that though it was perfectly appropriate to be supply driven in the past, the fundamental rules on which business economies function has now changed 180 degrees. Whereas sellers once dominated nearly all markets because world economies were generally able to absorb all the supply being created, supply now outstrips demand, and buyers rule. Thus, says Kash, if companies are to be successful in the future, they must not create products/services until they first determine what current and emerging demand exists.
The New Law of Demand and Supply outlines a six-step Demand Strategy (which the author promises is "vastly different" from customer focus, customer intimacy, or "any of the many customer approaches of the past few years") that can help companies differentiate their products/services so that they align as closely as possible with the demand of targeted customers in the marketplace from which the most profit can be earned. Rather than being forced to compete on price, this approach allows companies to outmaneuver the competition and compete on value.