Framework for Business Definition and Competitor Analysis PPT

This PPT slide, part of the 60-slide Business Definition Analysis PowerPoint presentation, presents a framework for understanding business definitions through various lenses, primarily focusing on customer sharing, competitor assessments, cost sharing, and the dynamics that influence these definitions.

The "Customer Sharing" section evaluates the degree of overlap between customer bases and the potential for functional substitution. It categorizes businesses based on the level of customer sharing, ranging from low to high. The implications of these categories suggest that high customer sharing likely indicates a single business entity, while low sharing points to separate businesses. This analysis helps in determining strategic alignment and potential synergies.

In the "Competitor Acid Tests" segment, the slide outlines 3 critical tests: consistency, profit explanation, and independent actions. Each test probes into competitor behaviors and market dynamics. For instance, consistency examines the products offered by competitors and their target customers. Profit explanation assesses the correlation between profitability and market share, while independent actions explore the impact of decisions made in one business on another, particularly concerning pricing and investment strategies.

The "Takeaway Slides" section emphasizes cost sharing and experience transfer, categorizing businesses based on their ability to share costs effectively. This quadrant analysis provides insights into whether businesses operate as separate entities or as a unified organization.

Lastly, the "Dynamics of Business Definition" illustrates the interconnected factors influencing business definitions, including customer needs, technology, and government regulation. This holistic view encourages executives to consider various external and internal factors when defining their business strategy.

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Strategic Analysis

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