This PPT slide, part of the 51-slide Complete Guide to Business Strategy Design PowerPoint presentation, outlines the Situation Diagnosis phase, focusing on understanding the profit impact of segment attractiveness and the company's competitive position. It poses 3 key questions that guide the analysis.
The first question addresses returns from each segment, prompting a review of financial performance across different market segments. This helps in identifying which segments yield the highest returns and informs strategic decisions about resource allocation.
The second question evaluates the profit potential of various segments compared to others. It emphasizes growth opportunities, customer needs, and the presence of substitutes. Factors such as customer price sensitivity, competitor concentration, and rivalry are also considered, which are essential for assessing the attractiveness of each segment.
The third question delves into the basis for economic advantages over competitors. It prompts an evaluation of operational aspects like cost management, technology utilization, and service quality, specifically on-time delivery. This analysis is crucial for determining how well the company positions itself against competitors.
The visual representation on the slide categorizes segments based on their attractiveness and the company's returns, creating a clear framework for decision-making. The size of the circles likely indicates the relative significance or market share of each segment, providing a visual cue for prioritizing strategic focus.
Overall, this slide serves as a foundational tool for executives to assess market opportunities and align their strategies accordingly. It encourages a methodical approach to understanding where to invest efforts for maximum profitability.
This slide is part of the Complete Guide to Business Strategy Design PowerPoint presentation.
Created by former MBB consultants, this toolkit provides a details process and powerful frameworks to guide through strategy development process.
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