An organization's Growth Strategy should take into account both in-market and near-market opportunities, supported by an aligned set of organizational capabilities. In-market growth triggers enhanced revenue necessary to make critical investments, whereas near-market growth capitalizes on the investment by employing the right capabilities.
Most leaders wonder where they should start. This PowerPoint presentation explains the Capabilities-Growth Matrix, a framework that provides answers to leaders' deliberation on where to begin.
The horizontal axis represents distinct capabilities and their suitability with the available or potential opportunities. The vertical axis of the matrix depicts the room for growth in existing markets.
The 4 quadrants of the Capabilities-Growth Matrix are defined as:
1. Poor Prospects – Organizations in this group lack distinct capabilities and any obvious growth opportunities.
2. Capabilities Challenged – In this group, organizations tend to have enough room for growth; however, their capabilities system is not in line with the available opportunities.
3. Headroom Challenged – Organizations in this group find it hard to compete and identify further potential growth opportunities. The best bet for these companies is to explore previously undetected opportunities in their existing markets and improve their unique capabilities to make the most of them.
4. Growth Leaders – Organizations in this group have well-aligned capabilities to capture ample in-market and near-market opportunities available to them.
Additional topics discussed in this deck include Continuous Growth Renewal, Capabilities Chaining, Capabilities-driven Growth Strategy, as well as numerous case examples.
This PowerPoint presentation on the Capabilities-Growth Matrix also includes some slide templates depicting the 4 Capabilities-driven Growth Options and the Capabilities Growth Matrix, which you to use in your own business presentations.
The presentation also covers practical examples from leading companies, illustrating the application of the Capabilities-Growth Matrix in real-world scenarios. It provides actionable insights for executives aiming to align their capabilities with growth opportunities effectively.
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Source: Best Practices in Growth Strategy, Distinctive Capabilities PowerPoint Slides: Capabilities-Growth Matrix PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This PPT slide presents the Capabilities-Growth Matrix, a strategic tool designed to assist organizations in evaluating their growth strategies based on their capabilities. It emphasizes the importance of aligning growth initiatives with both in-market and near-market opportunities. The matrix is structured as a 2x2 grid, where the vertical axis indicates the potential for growth, categorized into "Large" and "Limited," while the horizontal axis reflects the fit of distinct capabilities, ranging from "Incoherent" to "Coherent."
The content suggests that in-market growth can enhance revenue, which is crucial for making significant investments. Conversely, near-market growth leverages existing investments by employing the right capabilities. Leaders often face uncertainty regarding where to initiate their growth strategies. The matrix serves as a framework to clarify this, guiding leaders on how to assess their capabilities against available opportunities.
The 4 quadrants of the matrix categorize organizations based on their current capabilities and growth potential. "Capabilities Challenged" indicates a need for a fundamental rethinking of the business model. "Poor Prospects" suggests that organizations should focus on basic strategy and execution tasks. "Growth Leaders" highlights the necessity to refine investments in capabilities to achieve market leadership. Lastly, "Headroom-Challenged" points to the need for a business reimagining to unlock further growth.
This matrix not only provides a visual representation of an organization's current position, but also offers actionable insights for strategic planning. It encourages leaders to critically assess their capabilities and growth strategies to better navigate their market environments.
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