Four-Step Framework for Mapping Profit Pools PPT
This PPT slide, part of the 31-slide Profit Pools Concept PowerPoint presentation, outlines a structured approach to mapping profit pools, emphasizing a four-step process. Each step is designed to systematically analyze and quantify profit generation within an industry’s value chain.
The first step, "Define the Pool," focuses on identifying key value chain activities that impact the industry's current and future profit potential. The output here is a sequential list of these activities, which sets the foundation for deeper analysis.
In the second step, "Determine the Size of the Pool," the emphasis shifts to developing a baseline estimate of total profits generated by all activities within the identified profit pool. This step aims to provide a quantitative measure, possibly in the form of a range, to understand the overall profit potential.
The third step, "Estimate the Distribution of Profits," involves a more granular analysis. Here, the goal is to determine how profits are distributed among the various activities in the value chain. This step generates point estimates for each activity, providing insights into which areas are most lucrative.
Finally, the fourth step, "Reconcile the Estimates," calls for a comparison of the results from the second and third steps. This reconciliation process ensures that the estimates align, leading to final figures for both activity-specific profits and total pool profits.
Overall, this slide serves as a practical guide for executives looking to identify and leverage profit opportunities within their industry. The structured approach not only clarifies the process, but also highlights the importance of thorough analysis at each stage to make informed strategic decisions.
This slide is part of the Profit Pools Concept PowerPoint presentation.
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Industry Analysis Environmental Analysis Value Chain Profit Pools
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