This PPT slide, part of the 51-slide Complete Guide to Business Strategy Design PowerPoint presentation, outlines a structured approach to assessing an organization’s position within its market segments. It emphasizes the importance of understanding both customer preferences and competitor dynamics in order to inform strategic decisions.

The first section, "Identify customers’ selection criteria and competitor ranking," focuses on determining what factors influence customer choices. This includes evaluating price against other features and establishing the relative importance of these criteria. The organization’s current standing compared to competitors is also highlighted, which is crucial for identifying gaps and opportunities.

Next, "Estimate competitors’ shares and price realization" delves into quantifying the market presence of competitors. It suggests analyzing volume shares based on throughput and capacity, as well as understanding pricing strategies through lists and salesforce data. This information is vital for benchmarking performance and recognizing where the organization stands in relation to its rivals.

The third section, "Estimate competitors’ relative cost and asset positions," shifts the focus to the economic aspects of competition. It involves identifying cost drivers and assessing how competitors and new entrants measure up in terms of their resources. This analysis can reveal vulnerabilities and strengths that can be exploited.

Finally, "Identify the basis for advantage and our relative position" encourages a synthesis of insights gathered from the previous sections. It prompts organizations to articulate their value proposition while considering internal assets and competencies that can be leveraged. This comprehensive evaluation is essential for developing a robust strategy that aligns with market realities.

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Consulting Frameworks Strategy Development Chief Strategy Officer