Framework for Business Segmentation Analysis PPT

This PPT slide, part of the 60-slide Business Definition Analysis PowerPoint presentation, presents a framework for distinguishing between one business and separate businesses based on key dimensions: customers, cost structure, and competitors. It asserts that if 2 business segments share the same customers, cost structure, and competitors, they should be considered a single business entity. Conversely, if they differ in any of these aspects, they are classified as separate businesses.

The left side of the slide outlines the criteria for identifying a single business. It emphasizes the importance of having the same customers, cost structure, and competitors. This alignment allows for synergy, suggesting that businesses can leverage shared resources and strategies to enhance performance across segments. The accompanying arrow indicates a pathway to compete in both segments, reinforcing the idea that integration can lead to greater efficiency and effectiveness.

On the right side, the slide details the characteristics of separate businesses. Here, the focus shifts to differences in customers, cost structures, and competitors. This divergence implies that the businesses operate independently and do not compete in both segments. The corresponding arrow suggests that these businesses will not seek to leverage synergies, indicating a more fragmented approach to market engagement.

This framework is crucial for executives considering strategic decisions about business segmentation and resource allocation. Understanding whether to operate as one business or separate entities can significantly impact operational efficiency and market positioning. This slide serves as a foundational tool for evaluating business structure and guiding strategic planning.

This slide is part of the Business Definition Analysis PowerPoint presentation.

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