Segment Characterization: Evaluating Market Attractiveness PPT

This PPT slide, part of the 28-slide Organic Growth Framework (OGF) Series: Phase 5 PowerPoint presentation, outlines the initial step in Phase 5 of the Organic Growth Framework, focusing on segment characterization. The objective is to assess the attractiveness and feasibility of activating various market segments. This step is crucial for effective sequencing, which allows for prioritizing segments based on their potential impact.

Five types of data are highlighted for evaluation. First is Magnitude, which measures the absolute size of a segment through metrics like volume, revenue, or growth rate. This provides a quantitative basis for understanding the segment's significance.

Next is Influence, broken down into 2 dimensions. The first dimension assesses the segment's market impact, while the second evaluates how the segment affects the organization's own capabilities. This dual perspective helps in understanding both external and internal implications.

Propensity is the third type of data, referring to the likelihood of executing high-yield behaviors within the segment. This metric is essential for identifying segments that align with strategic goals.

Feasibility follows, which looks at how manageable it is to enact changes within the segment. This includes identifying leverage points and potential obstacles, ensuring that strategic initiatives are realistic.

Lastly, Competitive Sensitivity gauges the segment's importance from a competitive standpoint. This helps in understanding how critical the segment is to competitors, which can influence strategic decisions.

Overall, the slide emphasizes a structured approach to segment analysis, ensuring that decisions are data-driven and aligned with organizational capabilities and market dynamics.

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