: Henderson pioneered the observation that unit production costs typically fall by 20% to 30% every time a company's accumulated production experience doubles. This provides a mathematical logic for pursuing high market share to achieve cost leadership. Strategy as Time Compression
This was revolutionary. It meant that a CEO’s job was not to love every product, but to act as a financial allocator, stripping resources from the past (Cows) to build the future (Stars). the logic of business strategy bruce henderson pdf