Sunday, October 12, 2008
Blue Ocean Strategy
I have no read this book completely so far but this is an excellent insight into why you we should not take competition as the benchmark and create something altogether new which pushes the competition far from you....
BCG
Growth share matrix, excellent framework to understand which products to focus on and which one to eliminate, this is the dog, they are eating out on the cash flows...just click on the link..
business cases
1. profit improvement
Profit= Revenue-Costs
The company would like to understand why the profits have declined. The understanding of concepts is critical.
The above formula could be broken:
Profits=Revenue-Costs=(price-variable cost)*quantity)-FC
Break even point:
Total contribution= Total cost
Factors affecting price:
Market Power
Price elasticity
Product Differentiation
Brand Implications*
*Indicative list
Factors that affect volume:
Competition
Substitutes/complements
Distribution channels
Logistics
Growth Strategies:
Please refer to Ansoff's matrix
Industry Analysis
Tool: Porter's Five forces Analysis
other metrics could be:
oligopoly/monopoly/monopolistic competition/imperfect competition/what?
Trends
Market Entry
Understand the size of the market
Understand the competition
Analyze customers' needs
Identify gaps in need fulfillment
Assess the company's strengths
Evaluate barriers to entry
Evaluate methods to entry (Build/acquire, partner)
Analyse past entry successes/failures
Capacity Expansion
Estimate:
Potential benefit of expansion
Means to capacity expansion
Acquisition
is 1+1=3?
Rationale for acquisition
Likely competition response
Investment
Understand the business
Do an NPV analysis
Profit= Revenue-Costs
The company would like to understand why the profits have declined. The understanding of concepts is critical.
The above formula could be broken:
Profits=Revenue-Costs=(price-variable cost)*quantity)-FC
Break even point:
Total contribution= Total cost
Factors affecting price:
Market Power
Price elasticity
Product Differentiation
Brand Implications*
*Indicative list
Factors that affect volume:
Competition
Substitutes/complements
Distribution channels
Logistics
Growth Strategies:
Please refer to Ansoff's matrix
Industry Analysis
Tool: Porter's Five forces Analysis
other metrics could be:
oligopoly/monopoly/monopolistic competition/imperfect competition/what?
Trends
Market Entry
Understand the size of the market
Understand the competition
Analyze customers' needs
Identify gaps in need fulfillment
Assess the company's strengths
Evaluate barriers to entry
Evaluate methods to entry (Build/acquire, partner)
Analyse past entry successes/failures
Capacity Expansion
Estimate:
Potential benefit of expansion
Means to capacity expansion
Acquisition
is 1+1=3?
Rationale for acquisition
Likely competition response
Investment
Understand the business
Do an NPV analysis
creativity and innovation
Just mentioning a few things I learnt from the creativity and innovation sessions.
The key technique learnt was first diverge and then converge. We took the example of "how to solve the traffic problem on Indian roads?" and the idea is to write anything within a time frame during divergence. This will result in scores of ideas.
The next step is to converge by grouping the ideas into different groups and selecting what will be reaosonable and feasible to implement.
sir recommended a few books:
Cracking creativity- Michael Michalko
Use both sides of your brain
The key technique learnt was first diverge and then converge. We took the example of "how to solve the traffic problem on Indian roads?" and the idea is to write anything within a time frame during divergence. This will result in scores of ideas.
The next step is to converge by grouping the ideas into different groups and selecting what will be reaosonable and feasible to implement.
sir recommended a few books:
Cracking creativity- Michael Michalko
Use both sides of your brain
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