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In an era when business managers increasingly recognize that they are limited in the amount of shareholder value they can add by reducing costs, it is interesting to read a book that focuses on the management of revenue rather than the control of costs. In Revenue Management, Robert Cross takes the position that in today's complex markets the secret to creation of shareholder value lies in managing the customer and the product or service to maximize the revenue of the enterprise. A management consultant who has helped prestigious clients such as American Airlines and National Car Rental to significantly increase their sales and profitability, Cross stresses the importance of focusing on the outside (the market) rather than on the inside (the company). His book defines revenue management as "the application of disciplined tactics that predict consumer behavior at the micromarket level and optimize product availability and price to maximize revenue growth." It asks "how can you maximize your revenues on each and every sale?"
Cross calls markets that have become increasingly fragmented "amoeba markets," because they constantly change and subdivide. As...