This PPT slide, part of the 60-slide Business Definition Analysis PowerPoint presentation, titled "Business Definition Steps - Summary" outlines a structured approach to defining a business's operational framework. It employs a triangular model to illustrate the relative importance of 3 key areas: cost sharing, customer sharing, and competitor analysis. The vertical axis indicates the degree of emphasis, suggesting a hierarchy where cost sharing is deemed most critical, followed by customer sharing, and lastly, competitor analysis.
At the top, the section on cost sharing poses 2 essential questions: whether there is substantial direct cost sharing and if there are opportunities for experience transfer. This indicates a focus on identifying synergies that can enhance operational efficiency and reduce expenses.
The middle section, dedicated to customer sharing, raises questions about the degree of functional substitution and customer base overlap. It emphasizes understanding how much customers may switch between offerings and the barriers they face in doing so. This suggests that recognizing customer behavior is vital for strategic positioning.
The final segment, labeled "Competitor acid tests," assesses whether competitors are offering similar products and services. It also considers the interdependencies of decisions made by competitors across different business lines. This highlights the need for a comprehensive understanding of the competitive environment and how it influences strategic choices.
Overall, this slide serves as a guide for executives to evaluate their business definitions critically. It encourages a thorough examination of cost and customer dynamics, alongside competitor interactions, to inform strategic decision-making. The structured approach can help in aligning business strategies with market realities, ultimately leading to more informed and effective management practices.
This slide is part of the Business Definition Analysis PowerPoint presentation.
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