Business Strategy Case Framework

Embed Size (px)

Citation preview

  • 7/24/2019 Business Strategy Case Framework

    1/2

    The business st rategy ca se framework ca n be used in multiple situations l ike new product launch, marketentry, new business, company p osition turnaround, analysing business g rowth drivers.

    The analysis ca n be divided under four main heads:

    Company (or an analysis o f the existing strengths a nd weaknesses o f the client):

    Existing capabilities a nd expertise of the client based on the current product line

    o The c urrent distribution c hannels a nd the s calability o f the channels

    o Manufacturing exp ertise

    o Raw material sourcing channels

    Product or the b usiness t he c ompany is t rying to get into: Here try a nd understand the new productoffering in detail:

    What kind of a product it is (com modity product or easily differentiable product) and whether thecompanys b rand image is i n l ine w ith this n ew product?

    Are their existing synergies t hat can benet the client (some complimentary product, or a newniche product segment taking off)?

    What v alue-add will it be to a prospective customer? And are there any substitutes to the newproduct?

    Competition: The competitive analysis c an be at multiple levels.

    What i s the current market st ructure in this segment monopoly, duopoly, highly fragmented,concentrated oligopoly?

    Existing competition What a re their product offe rings and how will the new product bedifferentiated?

    Prospective Competition Is the segment lucrative enough to attract new competition? What are

    the barriers to entry (R&D capability, better t echnology, high capital costs, st rong distributionchannel etc.)?

    User Porters 5 forces to model to analyse this aspect in detail (supplier side concentration, buyerside concentration etc.)

    Regulatory e nvironment and government policies a nd the lifecycle of the product in that light.

  • 7/24/2019 Business Strategy Case Framework

    2/2

    While analysing the problem statement under all these heads i t is i mportant to analyse the customer ofthe product. You would see t hat during your analysis t he customer of the product will come into the pictureat every juncture.

    Identify t he potential customer an d segment on the basis o f demographics

    The key ne eds of each se gment and h ow is t he product going to a ddress t hem p otential growthrate o f each seg ment

    The pricing and the perceived value for each se gment

    Again b ring in t he ve forces t o u nderstand the b uyer power and concentration.