Analysis - Business Week Top 50 Reveals Simplicity Trend

Business Week recently unveiled the 2008 Businessisn't necessarily about offering consumers more
Week 50, the magazine's annual ranking of topchoices, but offering choices that are more
companies.convenient. As consumers battle rising inflation and an
An analysis of The BW 50 reveals one of an earlyuncertain economic future, "Time is Money" rings
marketing trend for 2008: Simplicity.truer than ever.
The rankings focus on two core financial measures:It's not just consumers, either. Small businesses are
average return on capital and growth BW comparedfighting recessionary forces, putting a premium on
companies with others in their sectors to identifysolutions that simplify operations.
companies that are the best performers relative toNowhere is Small Business America's need for an
their peers.easier, more convenient option more obvious than
The #2 company, biotech firm Gilead, found apromoting their companies
market for drugs that were simpler and cheaper thanLack of access to marketing services puts smaller
standard HIV treatments. The result: Gilead profitscompanies at a competitive disadvantage. With
tripled since 2004.marketing budgets typically under $50,000, small and
Gilead wasn't the only one cashing in on simplicity.mid-size firms traditionally find themselves cobbling
Luxury handbag maker Coach simplified its handbagstogether a patchwork marketing effort: an in-house
and found a huge market for small ticket items.marketing guy for one piece, a freelancer for
Starbucks got back to basics by focusing on what itanother, a do-it-yourself fix for another.
used to best: brewing a premium cup of coffee.Mr. and Mrs. Small Business are no strangers to
If you need further evidence that simplicity is king incomplication. Government regulation is a perennial
2008, look no further than Apple's Mac Air, thethorn in the side of America's entrepreneurs. Finding
ultra-slim laptop that has been the most buzzedcapital is like a no-win game of Three-card Monte.
about new product since...of all things...Apple's iPhoneThe health care puzzle remains a mystery.
in summer 2007.The ability to reach out to customers easily and
All of this is in response to consumer demand forconveniently could be the make-or-break difference
greater convenience.for small and mid-size firms in 2008. With so much at
The lesson here is that less may be more in 2008.stake, "Simplify" may emerge as the most practical
Grabbing a bigger market share during a recessionbusiness advice of the year.