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PowerPoint Diagram Pack Growth Strategy Toolkit ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Competitive Advantage Lower Cost Differentiation Cost Leadership Differentiation Cost Focus Differentiation Focus Competitive Scope Broad Narrow
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
All companies are faced with the challenge of achieving sustainable growth Not many companies achieve significant growth Most difficult for large companies Those that do, find it difficult to sustain ,[object Object],[object Object],Source: “The do-or-die struggle for growth”, McKinsey Quarterly, 2005 November 3 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Challenge – Sustainable Growth THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/
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/
Successful companies balance the competing demands of optimizing existing core businesses while building new ones Description Source:  The Alchemy of Growth , Baghai, Coley and White, 1999. Profit Time Horizon 1 Horizon 2 Horizon 3 Extend and defend the core business Build emerging businesses Create viable options for future growth ,[object Object],[object Object],[object Object],[object Object],Manage for profitability Continuing innovation Efficiency optimization  Strong Operational Managers / Leaders Stage Objectives Managing for Growth requires… ,[object Object],[object Object],[object Object],Business Builders /  Entrepreneurial  Value Creators ,[object Object],[object Object],[object Object],[object Object],Visionaries /  Unconventional Thinkers Drive ventures to take root Replicate the business model Seed growth options Test business model Framing the Growth Challenge THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/
However, many companies are inconsistent in managing short and long-term thinking and investment to create growth-enabled organizations Source:  The Alchemy of Growth , Baghai, Coley and White, 1999. Horizons  1  2  3 Common Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Barriers to Growth THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/   Under siege Losing the right to grow   Running out of steam  Inventing a new future   Generating ideas but not new businesses   Failing to seed for the future  
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/
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Traditional concepts of growth strategy are based on internal analysis and interpretation of the marketplace Question Marks  Growth Boston Consulting Group Competitive Position McKinsey, General Electric, Shell Competitive Position Arthur D. Little Maturity Infancy  Growth  Maturity  Ageing High Medium Low Divest  Harvest Protect and refocus Manage  Manage  for  for earnings  earnings  Protect Position Build selectively Invest to Build Build selectively Dominant Strong Favorable Unfavorable Marginal Natural Development Selective Development Reorientation Reorientation Divestment Harvest Relative Market Share 10  1  0.1 Stars  Cash  Cows + 50 % + 5 % - 10 % Dogs  Attractiveness ,[object Object],[object Object],[object Object],M. Porter, Competitive Strategy Competitive Scope Competitive Advantage Low Cost Differentiation Broad Target Narrow Target Differentiation Focus  Cost Leadership  Common Growth Concepts THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/   Strong Medium Weak
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
Porter’s Five Forces assesses the attractiveness of an industry along each competitive force to determine the correct competitive strategy Pressure from Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Threat of New Entrants Intensity of Rivalry Low, stable returns Low, risky returns High, stable returns High, risky returns Exit Barriers Entry  Barriers L H L H Cost Leadership Differentiation Cost Focus Differentiation Focus Competitive Advantage Competitive Scope Broad Narrow Lower Cost Differentiation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Porter’s Five Forces THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/
Headline message Porter’s Five Forces – Template Suppliers Internal Rivalry New Entrants Substitutes Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Competitive Advantage Lower Cost Differentiation Cost Leadership Differentiation Cost Focus Differentiation Focus Competitive Scope Broad Narrow INDUSTRY COMPETITIVE ASSESSMENT COMPETITIVE STRATEGY THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The modern strategy thinking of Blue Ocean Strategy focuses on enabling innovation, value creation, and effective execution Growth Focus Source: C. Kim, R. Mauborgne, Harvard Business Review (1997). Value Identification Value Creation Effective Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Modern Strategy Thinking Eliminate Reduce Raise Create Costs Value Value Innovation THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/   Growth Platform Consumer  Need Market  Trends
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
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/
END OF PARTIAL PREVIEW You can preview the full PowerPoint document and  download it at  http://learnppt.com/powerpoint/
Browse our catalog of PowerPoint Diagram Packs http://learnppt.com/powerpoint   Join our mailing list and receive the  Basic Toolkit for free ! http://learnppt.com/mailinglist   Read our eBook – How to Become a PowerPoint Guru http://learnppt.com/

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Growth Strategy Toolkit

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  • 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/
  • 18. END OF PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/
  • 19. Browse our catalog of PowerPoint Diagram Packs http://learnppt.com/powerpoint Join our mailing list and receive the Basic Toolkit for free ! http://learnppt.com/mailinglist Read our eBook – How to Become a PowerPoint Guru http://learnppt.com/

Hinweis der Redaktion

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  5. © 2006 learnppt - All rights reserved Prior to 1979 there were a variety of analytical tools that were used in the strategy development process Each one relied on comprehensive analysis of the market and of the company’s position within it Some of the early tools were mostly qualitative, and were developed by large corporations such as General Electric and Shell, or consulting firms such as McKinsey and Arthur D Little BCG pioneered a quantitative approach, and their matrix became the reference tool of the late seventies It is worth mentioning that many of these tools are still in use . Comment on some of the matrices if you feel like it. It is important to show that you’ve mastered them
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  8. © 2006 learnppt - All rights reserved
  9. © 2006 learnppt - All rights reserved
  10. © 2006 learnppt - All rights reserved A fundamental observation is that value can be created during the life cycle of the offering along three platforms The product platform The service platform The delivery platform It’s not by accident that the platforms are listed in that order : most firms tend to focus their value generation activities on the product platform, which is also where they are most likely to be imitated Overall, in a sample of 100 companies, the vast majority of launches takes place within the Settler frontier as companies attempt to meet customers’ expressed needs. However, the majority of profits occur as companies innovate to meet needs that customers do not articulate Give an example or mention that the Compaq example will be presented later