analysis and tools in which major markets does the firm desire to compete?
TRANSCRIPT
Analysis and Tools
In Which Major Markets Does The Firm Desire To
Compete?
332Low
321Medium
311High
LowMedium High
332Low
321Medium
311High
LowMedium High
Ab
ilit
y to
Co
mp
ete
Market Attractiveness
1 Invest/Grow2 Selective Investment3 Harvest/Divest
Dogs Cash Cows
Stars
Relative market share
Ma
rke
t g
row
th r
ate
Question Marks
Data Collection
Competitor Actions
Image & Positioning
Objectives & Commitment
Size, Growth & Profitability
Exit Barriers
Cost Structure
Organization & Culture
Current & Past Strategies
Strengths & Weaknesses
Competitor Actions
Image & Positioning
Objectives & Commitment
Size, Growth & Profitability
Exit Barriers
Cost Structure
Organization & Culture
Current & Past Strategies
Strengths & WeaknessesStrengths & Weaknesses
Define Strategic
Competitor Groups
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
Identify Attributes & Motivations
Competitive Bench-marking
Identify Competitor Strengths & Weaknesses
Competitor Products, Services,
Applications
Identify Key Competitor Customers
Identify Key Competitors
Competitor Analysis
Who Are My Competitors? What Do They Look Like? What Makes
Them Act The Way They Do?
What Are My Competitors’ Cost Structures?
Who Are Their Customers?
What Products / Services / Applications Do Our Competitors
Offer?
What Are My Competitors’ Strengths & Weaknesses?
Data Collection
Construct Price / Value
Curves
Product Matrix
Competitor Products, Services,
Applications
Competitor Analysis
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Product EProduct DProduct CProduct BProduct A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Product EProduct DProduct CProduct BProduct A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Service EService DService CService BService A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Service EService DService CService BService A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
App EApp DApp CApp BApp A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
App EApp DApp CApp BApp A
What Are Our Products Services / Applications And How Do They Relate In Value Versus Price?
How Do Our Products / Services / Applications Compare To Our Competitors?
Low
Hig
h
High
Lo
w
Convenience
Lo
yalt
y
H
E
V
AL
Data Collection
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Product EProduct DProduct CProduct BProduct A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Product EProduct DProduct CProduct BProduct A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Service EService DService CService BService A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
Service EService DService CService BService A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
App EApp DApp CApp BApp A
Competitor 10
Competitor 9
Competitor 8
Competitor 7
Competitor 6
Competitor 5
Competitor 4
Competitor 3
Competitor 2
Competitor 1
App EApp DApp CApp BApp A
Given Competitive Comparisons, Who Are The Company’s Most
Threatening Competitors?
Who Are They And What Technologies / Strategies Do
They Employ?
Probable Impact
Brand NameDescriptionName Probable Impact
Brand NameDescriptionName
• Facilities, Locations
• Capacity
• Sales
• Employees
• Assets
• Growth
• Participation
• Exit Barriers
• Commitment
Services
Applications
etcProduct Benefits
Product Features
CIPPProduct
Services
Applications
etcProduct Benefits
Product Features
CIPPProduct
• Technology
– Product Technology
– Installation Technology• Past & Current Strategies
– Key Success Factors
– Core Competencies
– Objectives
• Organization & Culture
• Value Chain
– Strengths & Weaknesses
– Cost Structure, Price Structure, Profitability
• Opportunities & Threats
Data Collection
Customer Analysis
.Identify Key Customers
.Identify Attributes & Motivations
.Identify Key Non-Users
Identify Key Competitor Customers
DemographicsDemographicsShapiro’s Model
Who Are My Customers / Non-Users / Competitors’ Customers? What Do They Look Like? What Makes Them Act The Way They
Do?
Competitor Analysis
Non User Analysis
Data Collection
.Identify Key Customers
.Identify Attributes & Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
.Identify Key Non-Users
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
Trenchless Users
Insituform Customers
Competitor Customers
Non UsersTrenchless Users
Insituform Customers
Competitor Customers
Non Users
Market
.Define Strategic Groups
Identify Key Competitor Customers
Who Are My Customers / Non-Users / Competitor’s Customers? What Do
They Look Like? What Makes Them Act The Way They Do? How Does This Information Allow Me
To Strategically Group And Align These Customers To Define The
Overall Market?
Customer Data
Competitor Customer
Data
Non User Data
Analysis and Tools
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Motivations
5.5.5.5.5.
4.4.4.4.4.
3.3.3.3.3.
2.2.2.2.2.
1.1.1.1.1.
Attributes
Customer 25Customer 4Customer 3Customer 2Customer 1
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
5.
4.
3.
2.
1.
Motivations
5.
4.
3.
2.
1.
Attributes
OtherGroup 4Group 3Group 2Group 1
Trenchless Users
Insituform Customers
Competitor Customers
Non UsersTrenchless Users
Insituform Customers
Competitor Customers
Non Users
ONMLK
JIHGF
EDCBA
ONMLK
JIHGF
EDCBAGiven The Overall Market, How Do
I Segment ALL Customers And Non Users Into Servable Groups?
Analysis and Tools
ONMLK
JIHGF
EDCBA
ONMLK
JIHGF
EDCBA
O
No
N
Yes
M
Yes
L
No
K
No
J
No
I
No
H
Yes
G
Yes
F
No
E
Yes
D
No
C
Yes
B
Yes
A
Yes
O
No
N
Yes
M
Yes
L
No
K
No
J
No
I
No
H
Yes
G
Yes
F
No
E
Yes
D
No
C
Yes
B
Yes
A
Yes
332Low
321Medium
311High
LowMedium High
332Low
321Medium
311High
LowMedium High
Ab
ility
to
Co
mp
ete
Market Attractiveness
Given Defined Market Segments, In Which Segments Does The Company Desire To Compete?
Dogs Cash Cows
Stars
Relative market share
Mar
ket
gro w
thra
teM
arke
tgr
o wth
rate
Question Marks
Data Collection
Internal Analysis
Identify Value
Streams
Strengths & Weaknesses
Costs
Competitor Analysis
Strengths & Weaknesses
Costs
Competitive Bench-marking
Internal SurveyFinancial Analysis
Insituform Strengths & Weaknesses / Costs
Competitor Strengths & Weaknesses / Costs
What Are The Company’s Value Streams And How Do They Compare To Competitive
Strategic Groups’ Value Streams?
How Do Our Strengths, Weaknesses And Costs Compare
To Our Competitors?
Data Collection
Environ’l Analysis
Choose Financial Measures
Corporate Financial
Objectives
Five Forward
Five Back
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sales, $M
Product A
Product BProduct C
Product D
$M
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sales, $M
Product A
Product BProduct C
Product D
$M
What Is Occurring In The Industry Or Economic Environment That
Could Provide Opportunities, Pose Threats, Or Provide Key Economic Indicators For The
Business?
What Are The Appropriate Five Year Financial Objectives For The
Company?
Analysis and Tools
Environ’lAnalysisEnviron’lAnalysis
Internal Analysis
Identify Value
Streams
Internal Analysis
Identify Value
Streams
Identify Value
Streams
Strengths & Weaknesses
Costs
Competitor Analysis
Competitor Analysis
Strengths & WeaknessesStrengths & Weaknesses
CostsCosts
Competitive Bench-marking
Competitive Bench-marking
Insituform Strengths & Weaknesses / Costs
Competitor Strengths & Weaknesses / Costs
Given Internal, Competitive And Environmental Data, What Are
The Company’s Strengths, Weaknesses, Opportunities And
Threats Within The Market?
Strengths Weaknesses
Opportunities
• Competitor Weaknesses
• Environmental Analysis
Threats
• Competitor Strengths
• Environmental Analysis
Strengths Weaknesses
Opportunities
• Competitor Weaknesses
• Environmental Analysis
Threats
• Competitor Strengths
• Environmental Analysis
Analysis and Tools
Given The Company’s Strengths, Weaknesses, Opportunities And Threats Within The Market,
How Could The Firm Take Advantage Of Opportunities And Minimize / Eliminate Threats?
Strengths Weaknesses
Opportunities
• Competitor Weaknesses
• Environmental Analysis
Threats
• Competitor Strengths
• Environmental Analysis
Strengths Weaknesses
Opportunities
• Competitor Weaknesses
• Environmental Analysis
Threats
• Competitor Strengths
• Environmental Analysis
Strengths Weaknesses
Opportunities
Threats
How Could The Firm Take Advantage Of Market
Opportunities Given Its Strengths?
Where Could The Firm Improve To Take
Advantage Of Market Opportunities?
How Could The Firm Minimize Threats Given Its
Strengths?
Where Could The Firm Improve To Minimize
Threats?
Strategy Formulation
For Each Major Market Chosen, What Is The Company’s Overall Strategic Position?
What Is The Company’s Sustainable Competitive
Advantage?
Dogs Cash Cows
Stars
Relative market share
Mar
ket
gro w
thra
teM
arke
tgr
o wth
rate
Question Marks
332Low
321Medium
311High
LowMedium High
332Low
321Medium
311High
LowMedium High
Ab
ility
to
Co
mp
ete
Market Attractiveness
Basis of CompetitionProcesses
AssetsCompetencies
Where You CompeteProduct Market Selection
Whom You Compete AgainstCompetitor
SCA
The Way You CompeteProduct Strategy
Positioning StrategyManufacturing Strategy
Distribution Strategy
StrategicPosition
The Face of the Business Strategy
Differentiation From Competitors
Resonates With Customers
Drive and Guide Strategic Initiatives
Drive the Communication Programs
Express the Firm’s Vision
Strategy Formulation
Strengths Weaknesses
Opportunities
Threats
How Could The Firm Take Advantage Of Market
Opportunities Given Its Strengths?
Where Could The Firm Improve To Take
Advantage Of Market Opportunities?
How Could The Firm Minimize Threats Given Its
Strengths?
Where Could The Firm Improve To Minimize
Threats?
O
No
N
Yes
M
Yes
L
No
K
No
J
No
I
No
H
Yes
G
Yes
F
No
E
Yes
D
No
C
Yes
B
Yes
A
Yes
O
No
N
Yes
M
Yes
L
No
K
No
J
No
I
No
H
Yes
G
Yes
F
No
E
Yes
D
No
C
Yes
B
Yes
A
Yes
Growth In Existing Product Markets
Product Development
Market Development
Diversification
Integration
Present Products New Products
Present Markets
New Markets
Differentiation
Low Cost
Synergy
Preemption
Focus
Strategic Thrusts
For Each Segment
Chosen, What Are
Appropriate Strategies?
Strategy Formulation
Growth In Existing Product Markets
Product Development
Market Development
Diversification
Integration
Present Products New Products
Present Markets
New Markets
Differentiation
Low Cost
Synergy
Preemption
Focus
Strategic Thrusts
For Each Segment Strategy Chosen, What Are The Corresponding Value
Propositions To The Market?
ON
Yes
M
Yes
LK
JIH
Yes
G
Yes
F
E
Yes
DC
Yes
B
Yes
A
Yes
ON
Yes
M
Yes
LK
JIH
Yes
G
Yes
F
E
Yes
DC
Yes
B
Yes
A
Yes
Process Evaluation
Value Proposition
New Processes
EffectivenessChanges
Cost Reductions
New Processes
EffectivenessChanges
Cost Reductions
New Processes
New ProductPrograms
New Processes
EffectivenessChanges
Operational Processes
Customer Processes
InnovativeProcesses
Regulatory andSocial Processes
For Each Value Proposition, What Process Changes Need
To Occur?
Infrastructure and Capability Evaluation
Value Proposition
Operational Processes
Customer Processes
InnovativeProcesses
Regulatory andSocial Processes
What Organizational Competencies Must Be Present For Each Process Change To
Occur?
Organizational & Learning Processes – Human, Information and Organizational Capital
Organizational Changes
New Capabilities
Training and Education Programs
Infrastructure and Capability Evaluation
Value Proposition
Operational Processes
Customer Processes
InnovativeProcesses
Regulatory andSocial Processes
What Are The Estimated Financial Impacts of Process Changes and Organizational
Competencies?
Organizational & Learning Processes – Human, Information and Organizational Capital
Financial Impact
Productivity Strategy Growth Strategy
Operational Processes
Customer Processes
InnovativeProcesses
Regulatory andSocial Processes
PartneringFunctionsQuality
Price
Selection
AvailabilityService
Value Proposition
Brand
Attributes
ImageRelationship
Organizational & Learning Processes – Human, Information and Organizational Capital
Adapted From Strategy Maps Kaplan, Norton 2004
Inte
rna
lP
ers
pe
cti
ve
Growth and Learning Perspective
Strategy Map
Long Term Shareholder Value
Cost Structure Cust. SatisfactionRevenue GrowthAsset Utilization
Cu
sto
me
rP
ers
pe
cti
ve
Fin
an
cia
lP
ers
pe
cti
ve
NOW We’re Making Progress…
Next Steps:
• Financial Forecasting
• Financial Modeling
• Implementation Plans