This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Consolidation-Endgame Curve is an AT Kearney Growth Strategy framework commonly used by strategy consultants.
This product (Consolidation-Endgame Curve Framework) is a 29-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.
The Consolidation Curve, or Endgame Curve, is a framework based on the theory that all industries consolidate and follow a similar course through the 4 stages of: Opening, Scale, Focus, and Balance & Alliance. This framework is based on a study of 25,000 firms globally, representing 98% of the global market cap, conducted by the strategy consulting firm AT Kearney. The Consolidation Curve shows that merger actions and consolidation trends can be predicted.
Using the Consolidation Curve as guidance, a business can strengthen its consolidation strategies and facilitate merger integrations. A niche player can also determine the appropriate niche strategy to use and when is the best time to be acquired.
Every major strategic and operational move should be evaluated with regard to the industry's stage in the Consolidation Curve. Likewise, endgames positioning also offers a guide for portfolio optimization.
This document explains the framework in detail and includes case examples and PowerPoint templates. Topics include:
• Stages of Consolidation
• Growth strategy implications
• Stage impact on financials (e.g. revenue growth, profitability)
• Stage impact on strategy and operations
• Stage impact on management/organization
• Value-Building Growth Matrix
• Niche strategies
The Consolidation-Endgame Curve Framework document provides a comprehensive analysis of the stages of industry consolidation, emphasizing the critical importance of strategic and operational alignment at each phase. It highlights that the survival and growth of a company depend on its ability to navigate through the Opening, Scale, Focus, and Balance & Alliance stages effectively. The document underscores the inevitability of mergers for companies aiming to outpace competition and achieve sustainable growth.
The framework also addresses the challenges faced by companies at different stages, such as the need for continuous innovation during the Balance & Alliance stage and the shift from product development to financial optimization during the Scale stage. Detailed case studies, including those of niche players like Rolls-Royce, illustrate practical applications of the framework, providing valuable insights for executives looking to optimize their consolidation strategies.
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Source: Best Practices in Maturity Model, Growth Strategy, Business Maturity Model, Small Business PowerPoint Slides: Consolidation-Endgame Curve Framework PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines the 4 distinct stages of the Consolidation Curve: Opening, Scale, Focus, and Balance & Alliance. Each stage represents a phase in the lifecycle of industries as they undergo consolidation.
In the Opening stage, industries are characterized by low market concentration. This phase typically involves newly deregulated sectors, startups, and spin-offs. The driving forces for change include new technologies, regulations, and evolving consumer demands. The combined share of the top 3 players in this stage is 41%, indicating a fragmented market.
As industries transition to the Scale stage, major players start to emerge. Here, size becomes crucial, and these larger entities begin to dominate the consolidation process. Niche players face increasing pressure, and concentration rates can rise to 45% in certain sectors. The share of top players increases to 42%, reflecting this shift.
The Focus stage sees successful companies aggressively outgrowing their competition. These firms concentrate on their core business, often eliminating secondary units, which streamlines supply and value chains. The concentration of top players rises further to 50%, showcasing a more consolidated market.
Finally, in the Balance & Alliance stage, consolidation rates soar to 90%. A limited number of players dominate each industry, leading to strategic alliances among large companies. This stage presents challenges for growth, prompting firms to seek new industries in the Opening stage. The slide emphasizes that industry titans control 70% of the market at this point, underscoring the significant shifts that occur throughout the consolidation process.
This PPT slide presents a visual representation of profitability across 4 distinct stages of business development: Opening, Scale, Focus, and Balance & Alliance. The y-axis indicates EBITDA as a percentage, while the x-axis tracks time in years.
In the Opening stage, profitability begins relatively high, but starts to decline as the business transitions into the Scale stage. This decline is attributed to heightened competition and price reductions as companies consolidate. The accompanying text highlights that profitability reaches its lowest point during Scale due to aggressive market dynamics.
As businesses move into the Focus stage, there’s a noticeable recovery in profitability. This improvement suggests that companies are refining their strategies and operations, likely focusing on core competencies and optimizing their offerings. The graph indicates a positive trend in profitability, reflecting a more stable market position.
Finally, in the Balance & Alliance stage, profitability peaks, showcasing the highest margins. This stage is characterized by strategic partnerships and alliances, which allow companies to leverage synergies and reduce competition. The text notes that market leaders have effectively eliminated many competitors, leading to improved average profitability.
Key takeaways include the importance of understanding how profitability evolves through these stages. Companies need to be aware of the challenges in the Scale phase and strategize accordingly to enhance profitability in subsequent stages. This framework serves as a guide for executives to navigate their organizations through the complexities of growth and profitability management.
This PPT slide presents a Value-Building Growth Matrix that categorizes companies operating between 1988 and 2002 into 4 distinct groups based on their revenue growth and value generation. The primary takeaway is that only a small fraction, specifically 20%, of these companies are classified as "Value Growers." This group demonstrates the highest performance in both revenue and value metrics, with revenue growth at 18.0% and value growth at 21.5%.
In contrast, "Simple Growers," which make up 14% of the total, show moderate performance with a revenue growth of 13.8% and a value growth of just 2.7%. This indicates that while they are growing, their value creation is significantly lagging behind their revenue growth.
The largest segment, "Underperformers," accounts for 47% of the companies analyzed. This group exhibits low revenue growth at 3.6% and equally low value growth, suggesting a troubling lack of effective strategies to enhance both revenue and value.
Lastly, "Profit Seekers," representing 19% of the companies, have a revenue growth of 4.1% and a value growth of 12.8%. This indicates a focus on short-term profit rather than sustainable growth, which may not be a viable long-term strategy.
The matrix visually emphasizes the disparity between these groups, highlighting the challenges faced by the majority of companies in achieving both revenue and value growth. For potential customers, this analysis underscores the importance of strategic positioning and the need for a focus on value creation to ensure long-term success.
This PPT slide outlines the distinct organizational structures and management goals associated with 4 stages of business development: Opening, Scale, Focus, and Balance & Alliance. Each stage is characterized by specific traits that reflect the evolving nature of management as the company grows.
In the Opening stage, companies operate in a highly entrepreneurial manner. Decision-making is centralized, typically involving one or 2 founders. The management team is small, usually comprising just 3 to 7 individuals, which allows for agile decision-making, but may limit strategic oversight.
As the company transitions to the Scale stage, the organizational structure begins to formalize. Key operational roles are filled, and the management team expands to include more specialized teams focused on strategy, sales, and operations. The owner still plays a pivotal role in guiding the direction of the business, while line managers start to take on more responsibility, executing orders from upper management without independent decision-making.
In the Focus stage, the emphasis shifts towards creating a robust financial framework to support ongoing growth. The management team now incorporates line managers who contribute to strategic planning. The organizational structure becomes more decentralized, allowing for greater delegation of responsibilities, which is crucial for managing increased complexity.
Finally, in the Balance & Alliance stage, the management team is adequately staffed and experienced, often differing from the teams in earlier stages. The C-suite takes on a significant role in innovation and risk management, ensuring the company avoids stagnation. Detailed operational and strategic planning becomes essential, with line managers empowered to make significant decisions within their teams.
Understanding these stages is vital for any organization aiming to navigate growth effectively and implement appropriate management styles at each phase.
This PPT slide presents the Value-Building Growth (VBG) Matrix, a strategic tool designed to identify and evaluate potential acquisition targets. It is structured with revenue growth on the vertical axis and value growth on the horizontal axis. The data for these axes can be sourced from annual reports and SEC filings for revenue growth, while historical share price provides insights into value growth. The midpoints on both axes represent the industry averages, serving as benchmarks for analysis.
The matrix is divided into 4 quadrants: Simple Growers, Value Growers, Underperformers, and Profit Seekers. Simple Growers are positioned in the top-left quadrant, indicating they experience revenue growth, but may not significantly enhance value. Value Growers, located in the top-right quadrant, achieve both high revenue and value growth, making them ideal acquisition targets. Underperformers, in the bottom-left quadrant, struggle with both metrics, suggesting they may not be viable options for acquisition. Lastly, Profit Seekers, in the bottom-right quadrant, show potential for value growth, but lack revenue growth, indicating a need for strategic intervention.
The slide emphasizes the importance of plotting potential targets within this matrix while considering the acquirer's own business position. The ultimate goal of any acquisition or merger is to transition the resulting entity closer to the top-right corner of the VBG matrix, where both revenue and value growth are maximized. This framework aids executives in making informed decisions about acquisitions that align with their strategic objectives.
This PPT slide presents an overview of revenue growth across 4 distinct stages of the Consolidation Curve: Opening, Scale, Focus, and Balance & Alliance. Each stage is visually represented with arrows indicating growth trends and average growth rates.
In the Opening stage, the average revenue growth is the highest at 10.5%. This initial phase is characterized by companies establishing their market presence and making territorial claims. The graph suggests that this stage is critical for setting the foundation for future growth.
As companies transition to the Scale stage, the average growth rate decreases to 7.6%. This decline may reflect the challenges of scaling operations and the complexities involved in managing larger organizations. The slide highlights a "growth rate spread," indicating variability in performance among companies during this phase.
In the Focus stage, the average growth rate slightly increases to 8.8%. This suggests that companies may begin to refine their strategies and concentrate on core competencies, leading to improved growth outcomes. The upward trend implies that focusing on specific areas can yield positive results.
Finally, in the Balance & Alliance stage, the average growth rate drops to 8.1%. This stage likely involves strategic partnerships and balancing various operational aspects, which can introduce new dynamics affecting growth.
Overall, the slide underscores the importance of understanding growth patterns throughout these stages. It emphasizes that while initial growth is robust, subsequent stages require different strategies to maintain momentum. This analysis can guide executives in making informed decisions about resource allocation and strategic focus as they navigate their own growth trajectories.
This PPT slide presents a framework illustrating how various niche strategies align with different stages of industry consolidation. It categorizes these strategies into 4 distinct stages: Opening, Scale, Focus, and Balance & Alliance. Each stage is represented along a timeline, indicating the effectiveness of specific strategies as the industry evolves.
In Stage I, "Opening," strategies such as Regional and Target Group are highlighted. These strategies are typically employed when entering a new market or segment, focusing on establishing a foothold. As the industry matures into Stage II, "Scale," strategies like Product and Branding and Lifestyle become more prominent. This stage emphasizes expanding reach and enhancing brand recognition, suggesting a shift toward larger market share.
Stage III, "Focus," indicates a refinement of strategy, where Innovation and Cooperation take precedence. Companies may concentrate on niche offerings or partnerships to differentiate themselves in a crowded market. Finally, Stage IV, "Balance & Alliance," reflects a mature industry phase where firms must balance their strategies and possibly form alliances to sustain growth and adapt to market changes.
The visual representation of these stages and strategies provides a clear roadmap for executives to understand when to implement specific approaches based on their industry position. This framework can guide decision-making, ensuring that strategies align with current market dynamics. The underlying message is that as industries evolve, so too must the strategies employed by companies to remain relevant and effective. Understanding this progression is crucial for any organization looking to navigate the complexities of market consolidation successfully.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Consolidation-Endgame Curve is an AT Kearney Growth Strategy framework commonly used by strategy consultants.
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
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