Market dynamics have been changing and traditional approaches are leaving many companies with market values that are stagnant and eroding. Historical approaches are necessary but no longer sufficient. Understanding your complete Market Context is now an imperative and missing in strategy toolsets. The work will enable you to see your business within a broader context, understand all strategic options available and determine which one are most likely to generate value.

1. © Starcher Group LLC For the sole use of client
Market Context
A critical missing link in the Business Model and Strategy puzzle

2. © Starcher Group LLC For the sole use of client
Market Value
Why do once excellent companies end up under-
performing and see their market valuation flatten
and erode?
Source: Wikinvest, WolframAlpha
HP Growing horizontally
Market Value $B
CISCO Flatlined
Market Value $B
Blackberry
Market Value $B
Decline

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No single smoking gun
• The answer can be found across the business system:
– Incomplete or missing understanding of the Market
Context
– Company structures, systems, capabilities, assets
and processes (“Company”) become misaligned with
the strategic context and core
– The Culture evolves too slowly for the current
environment and no longer align with the Strategic
Context.
Why does market value go flat or decline?

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Market Context
• Context defines the external environment that is
relevant to the organization
• Market context focuses on business model and
strategic elements of the external environment
What is it?

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Market Context, Company and Core
The business
core is the
essence of the
company
The Company
leverages the core
to create value
within its context
The Market Context
is the environment
in which the
company operates
Alignment is what enables the company to operate at peak performance and
grow market value
History, Ecosystem, Competition,
Strategy Map, Trends,
Customer Value Gaps,
Customers
Brand, Strategies, Products,
Structure, Processes
Vision, Core Competencies,
Culture, Behaviors,
Employees
Core
Company
Market Context

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Market Context, Company and Core
While Companies
evolve through a
lifecycle
time
And the core naturally
changes at a relatively
slow pace
Core
Company
The "Market Context"
rate of change
continues to
accelerate
StrategicContext

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Market Context, Company and Core
ContextCompanyCore
Over time alignment gaps develop and widen, leading
to degraded market performance
Shared Value Gap
Culture
Company
Market
Context
Business Model Gap
An additional gap exists between real and perceived Strategic Context.
This can be due to inside-out perspectives, industry vs. ecosystem focus,
incomplete analysis, linear vs. systems thinking, lack of strategy map, …
time

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What is happening to YOUR COMPANY?
What would you like to see happen to YOUR COMPANY?
Changes in Market Value
Growing
sideways
Declining Expanding AcceleratingDecelerating
Market
Value

9. © Starcher Group LLC For the sole use of client
Market Context
Ecosystem
Company
Industry
Competitor
Competitor
The relevant space has shifted from the industry to the
ecosystem, requiring significant outside-in insights

10. © Starcher Group LLC For the sole use of client
Market Context
Traditional Approach Starcher Group Approach
Define market
Trend Analysis
Political, Economical, Social, Technological,
Legal, Environmental
Competitor Analysis
SWOT
Competitive forces
Porter 5 Forces
The bargaining power of buyers
Threat of new entrants
Power of competition
Competitor behavior
Competitor strategy
Consumer needs
Define ecosystem
Macro Trend Analysis
Economic, Environmental, Geopolitical, Societal,
Technological
Competitor Analysis
History
Porter 5 forces
SWOT, TOWS
Competitor Business Models
Ecosystem Analysis
Ecosystem definition
Experiences
Value Delivery Systems
Value Migration
Strategy Chessboard
Strategic Segments
Customer Value Gaps
Strategic Options
To change the trajectory of your company, using traditional market analysis
approaches is necessary but no longer sufficient

11. © Starcher Group LLC For the sole use of client
Market Context
Industry / Ecosystem Trends Strategy Chessboard
• How do I define the boundaries
of the ecosystem?
• Who are the players?
• How is value migrating within
the ecosystem?
• What strategic control points
can be employed to ensure
long term profit?
• What is the history of key
players? Where do they come
from and how have they arrived
where that are today?
• What trends are specific to the
ecosystem?
• What are the broader trends?
• Are there parallels in other
ecosystems?
• How do I create an actionable
frame/lens for the opportunity?
• What segments are the most
attractive?
• Where will we be allowed to
extract profit?
• What are all the potential
business games within the
ecosystem?
• What strategies are available
within each one of those business
games?
• What strategies are available to
me?

12. © Starcher Group LLC For the sole use of client
Client Projects
Client Gap Project
Fortune 100
company
business unit
Business Model
Gap
Traditional Competitive Analysis that evolved to understand the Digital Imaging
ecosystem, business models, competitors, value migration, Strategies. The
outcome was reverse engineering competitor master plan and impact on HP
business. The insights were not visible to senior management prior to the
engagement and led to significant changes in strategy.
Fortune 100
company
business unit
Business Model
Gap
Work with established team to create innovative business model in the
Marketing Collateral space. Created a new to this world business model that
was valued in excess of $1B
Fortune 1000
company
business unit
Market Context
Develop growth strategy for Business Unit in the Print Finishing Industry.
Developed market context (trends, ecosystem analysis, strategy chessbaord,
strategy options). This led to developing an operating model, organization
model and implementation plan that would enable the chosen strategies.
$1B private
company
Market Context
Develop a global and local point of view on Macro Trends that would inform
client’s long term technology roadmap.
$1B private
company
Market Context
Worked with client in search of a new growth platform in an unrelated market to
investigate Markets worth over $1T across 9 industries. For each industry,
develop strategic context and enumeration of potential strategies. The work
would lead to potential M&A actions.
The work delivers a complete set of strategic options and provides
the “Why” so critical for decisions, alignment and execution

13. © Starcher Group LLC For the sole use of client
Bruce Starcher
Managing Director
Starcher Group LLC
Office: 708 406 9460
email: bruce@starchergroup.com
web: www.starchergroup.com