This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, presents a framework for defining business opportunities based on 2 key dimensions: cost sharing and customer sharing. The vertical axis indicates the level of cost sharing, ranging from low to high, while the horizontal axis reflects the degree of customer sharing, also from low to high. This structure allows for a strategic categorization of various products and services.

In the high-cost sharing quadrant, we see examples like Gillette Sensor and Lady Shaver, which suggest a potential for differentiation or niche positioning. This indicates that these products might cater to specific consumer needs, allowing for premium pricing strategies. The inclusion of toilet paper and nappies in a separate business highlights the possibility of shifting towards a cost leadership strategy, suggesting that these products may benefit from economies of scale.

Moving to the high customer sharing quadrant, bed sheets and pillow cases are categorized as a single business. This implies that these products share significant customer overlap, which could lead to bundled offerings or cross-selling opportunities. Conversely, household furniture and business travel are identified as separate businesses, indicating distinct customer bases and possibly different marketing strategies.

The lower quadrants illustrate products like milk cartons and glass milk containers, which are positioned for substitution. This suggests that these items could be interchangeable from a consumer perspective, potentially leading to competitive pricing pressures.

Overall, this slide provides a strategic lens through which to evaluate product positioning and market opportunities, emphasizing the importance of understanding both cost and customer dynamics in business planning.

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Organizational Design Business Planning Leadership Positioning