This PPT slide, part of the 29-slide Consolidation-Endgame Curve Framework PowerPoint presentation, 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 slide is part of the Consolidation-Endgame Curve Framework PowerPoint presentation.
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.
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