Strategic Framework for Business Definition and Positioning PPT

This PPT slide, part of the 60-slide Business Definition Analysis PowerPoint presentation, presents a Business Definition Matrix utilized by XYZ to clarify economic boundaries within its operations. It emphasizes 2 key determinants: cost sharing and customer sharing. The matrix is structured into 4 quadrants, each representing different business configurations based on these determinants.

In the upper left quadrant, businesses with high potential for differentiation or niche positioning are highlighted. Examples like cross pens and BIC pens illustrate how companies can thrive by focusing on unique offerings. The adjacent quadrant indicates separate businesses that can achieve cost leadership, exemplified by oil and refinery by-products. This suggests that companies can optimize costs by maintaining distinct operations while still leveraging shared resources.

The lower left quadrant identifies separate businesses, such as beer and distilled spirits, indicating a low level of both cost and customer sharing. This configuration may imply a more traditional approach where distinct product lines operate independently. Conversely, the lower right quadrant showcases businesses with potential for bundling, like touring quality microphones and speakers, which can benefit from shared customer bases while maintaining separate identities.

The upper right quadrant presents businesses that can operate as a single entity, such as charge cards and credit cards, indicating high customer sharing. This suggests that companies can maximize their market reach by offering integrated solutions. The final entry in this quadrant points to businesses with potential for substitution, like milk cartons and glass milk bottles, emphasizing the importance of adaptability in product offerings.

Overall, this matrix serves as a strategic tool for understanding how different business configurations can be optimized based on cost and customer sharing dynamics. It provides insights into potential pathways for growth and efficiency.

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