1. Søren Svanebjerg 2011
Canvas
How we plan to grow and what we hope
Growth Strategy
our organisation will be in 5 years, do
Key
Partners
Key
Activities
Capabilities
Key
Resources
Value
Proposition
Customer
Relations
Channels
Mar ket &
Customer
Segments
Growth Strategy we plan to sell and if so to who and
when.
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
Key Customer
Activities Relations
The skills we need in
order to create the - How we intend to relate to
and interact with the
Market &
Key Value consumer.
Capabilities Customer
Partners Proposition
- value proposition, Segments
particularly the team. The offer to the consumer,
including how and why it
Who we will need to Key addresses their need /
fulfills their job to be done. Channels What group(s) of people
partner with or the input we benefit from the value
are dependent on in order Resources How consumers
themselves would describe
How the value proposition
is communicated and
proposition, how many
to develop / deliver the the benefit. there are now and in the
value proposition. delivered to the future.
consumer.
Cost Structure << Revenue Streams & Pricing Model
How will we price the proposition, whether it be fixed, variable or subscription
How much it will cost to initially develop the value proposition and how much it pricing. Includes alternativ sources of revenue, particular important if the
will cost to subsequently market end deliver it. consumer is not expected to pay.
Who the existing competitors are and
how we will react to them and likely new
Competitive Strategy entrants into this space, why will we
win?
2. Søren Svanebjerg 2011
What, Who & How
Growth Strategy
Key
Partners
Key
Activities
Capabilities
Key
Resources
Value
Proposition
Customer
Relations
Channels
Mar ket &
Customer
Segments
How & When?
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
What
& How?
How?
What
& Which? What? Who?
Who?
Who
& How?
What?
What? << How?
Who & How?
4. Søren Svanebjerg 2011
Porters 5 forces
Growth Strategy
Key
Customer
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
Supplier Power: Competitors Rivalry: Buyer Power:
Supplier concentration Number of competitors (concentration) Number of buyers relative to sellers
Availability of substitute inputs Relative size of competitors (balance) Product differentiation
Importance of suppliers inputs to company Industry growth rate Buyers switching cost to other product
Suppliers product differentiation Fixed costs vs. variable costs Buyers profit margins
Importance of industry to suppliers Product differentiation Buyers use of multiple sources
Companys switching cost to other input Capacity augmented in large increments Buyers threat of backward integration
Suppliers threat of forward integration Buyers switching costs Sellers threat of forward integration
Companys threat of backward integration Diversity of competitors Importance of product to the buyer
Exit barriers Buyers volume
Strategic stakes
Threat of Substitution: Threat of new Entrants:
Relative price of substitute Barriers to entry
Relative quality of substitute -Economies of scale
Switching cost to buyers -Product differentiation
-Capital requirements
-Switching costs to buyers
-Acces to distribution channels
-Other cost advantages
-Government policies
Incumbants defense of market share
Industry growth rate
5. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Value Proposition
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• What value do we deliver to the customer?
• Which one of our customer’s problems are we helping to solve?
• What bundles of products and services are we offering to each
customer segment?
• Which customer needs are we satisfying?
• characteristics
– Newness
– Performance
– Customization
– “Getting the Job Done”
– Design
– Brand/Status
– Price
– Cost Reduction
– Risk Reduction
– Accessibility
– Convenience/Usability
6. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Customer Segments
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• For whom are we creating value?
• Who are our most important customers?
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided Platform
7. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Customer Relationships
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• What type of relationship does each of our Customer Segments
expect us to establish and maintain with them?
• Which ones have we established?
• How are they integrated with the rest of our business model?
• How costly are they?
• examples
– Personal assistance
– Dedicated Personal Assistance
– Self-Service
– Automated Services
– Communities
– Co-creation
8. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Channels
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• Through which Channels do our Customer Segments want to be
reached?
• How are we reaching them now?
• How are our Channels integrated?
• Which ones work best?
• Which ones are most cost-efficient?
• How are we integrating them with customer routines?
• channel phases:
– 1. Awareness
• How do we raise awareness about our company’s products and services?
– 2. Evaluation
• How do we help customers evaluate our organization’s Value Proposition?
– 3. Purchase
• How do we allow customers to purchase specific products and services?
– 4. Delivery
• How do we deliver a Value Proposition to customers?
– 5. After sales
• How do we provide post-purchase customer support?
9. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Revenue Streams
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
•For what value are our customers really willing to pay?
•For what do they currently pay?
•How are they currently paying?
•How would they prefer to pay?
•How much does each Revenue Stream contribute to overall revenues?
types: fixed pricing: dynamic pricing:
Asset sale List Price Negotiation( bargaining)
Usage fee Product feature dependent Yield Management
Subscription Fees Customer segment dependent Real-time-Market
Lending/Renting/Leasing Volume dependent
Licensing
Brokerage fees
Advertising
10. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Competitive Strategy
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
•Who are our competitors and how do they perform?
•Who are the likely entrants?
•How is the industry developing?
•Are we going for cost leadership, differentiation or broad scope?
•Are our capabilities valued, rare, inimitable, sustainable and
appropriable?
•What are our Buyer power like?
•What are our Supplier power like?
11. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Key Activities
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• What Key Activities do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue streams?
• categories
– Production
– Problem Solving
– Platform/Network
12. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Key Resources
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• What Key Resources do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?
• types of resources
– Physical
– Intellectual (brand patents, copyrights, data)
– Human
– Financial
13. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Key Partners
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• Who are our Key Partners?
• Who are our Key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
• motivations for partnerships:
– Optimization and economy
– Reduction of risk and uncertainty
– Acquisition of particular resources and activities
14. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Cost Structure
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• What are the most important costs inherent in our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• is your business more:
– Cost Driven (leanest cost structure, low price value proposition, maximum automation,
extensive outsourcing)
– Value Driven ( focused on value creation, premium value proposition)
• sample characteristics:
– Fixed Costs (salaries, rents, utilities)
– Variable costs
– Economies of scale
– Economies of scope
15. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Profit
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• Are the revenue streams superceeding the costs?
• Do the nature of cost structure match the revenue types?
– Variable vs. Fixed
– Payment terms Supplier vs. Customer
• Can Initial investments be paid back within acceptable time
perspective?
16. Søren Svanebjerg 2011
Growth Strategy
Key
Customer
Growth
Activities
Relations
Mar ket &
Key Value
Capabilities Customer
Partners Proposition
Segments
Key Channels
Resources
Revenue Streams
Cost Structure <<
Pricing Model
Competiti ve Strategy
• Is there an interesting growth potential in the business case?
• How shall growth be achieved?
– Organic growth
– Mergers & Acquisitions
• What are capital requirements for growth?
• How shall required capital be raised?
– Lending from financial institutions
– Divesting of non-core business
– New investor capital
• Existing investors
• New investors
• What are the exit strategy?