5. Growth is commonly inhibited by a lack of breakthrough ideas, balancing cost-out and margin trade-offs, and execution challenges Few breakthrough growth offerings identified Focus is on existing markets and demand (e.g., line extensions, substitutes) Current Situation Strategic Issues Create customer value (Value Innovation) Growth at the expense of profitability Benefit trade-offs are not made (e.g., the right mix of attributes) Pricing and cost structure are driven by competition Align value proposition with operations/organization Lack of execution follow-through for growth initiatives Effectively execute strategy Consumers are increasingly sophisticated and hard to please The Resolution Metrics and rewards based on current operations Lack of committed financial resources Organizational structure is not in line with new business Opportunities are defined by internal/operational capabilities Structure and processes to develop and manage growth do not exist Growth Challenges THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/
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8. Faced with challenges to grow profitably, we work clients to identify their path to value creation and innovation Increasing Value from Current Business Improve Pricing Optimize Product Mix Expanding Business Scope Growth Opportunities Expand Into New Segments / Categories Develop New Products/Brands Develop New Formats/ Channels Improve/Change Value Proposition Expand Geographically Solidify Customer Relationships Penetrate markets with existing products Paths to Growth Build, Buy, Ally THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/
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11. Traditional approach to growth strategy is based on the teachings of Michael Porter—namely Porter’s Five Forces framework Traditional Strategy Thinking – Porter’s Five Forces THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ 4. Suppliers Suppliers negotiation power 2. Competitors in the industry Rivalry among existing companies 1. Potential new competitors Threat by new competitors 3. Substitution products Threat by substitution products 5. Customers Buyers’ negotiation power
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16. Modern thinking moves away from a traditional focus on competition to “blue oceans” of opportunity Source: C. Kim, R. Mauborgne, Harvard Business Review (1997) Shift to “Make Competition Irrelevant” THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ Traditional Thinking Modern Thinking Industry Industry conditions are given – compete in existing market space Industry conditions can be shaped – create uncontested market space Strategy Companies must build competitive advantages to beat competition Make competition irrelevant Market Exploit existing demand Create and capture new demand Resources Make the value-cost trade-off Break the value-cost trade-off Organization Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost Align the whole system of a firm’s activities in pursuit of differentiation and low cost Offerings Maximizing the offering’s value within industry boundaries Offering buyers the total solution that transcends the industry
17. Value is created from more than just “meeting customer needs” Pioneers (Need beyond buyers cognition) 14% of launches 38% of sales 61% of profits 86% of launches 62% of sales 39% of profits (Company sampling) Source: C. Kim, R. Mauborgne, Harvard Business Review (1997) Deliver Platform Product Platform Service Platform Portfolio Positioning Migrators (Need known but not articulated by the buyer) Settlers (Need identified) THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/
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