BCG Experience Curve (PowerPoint PPT)

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This product (BCG Experience Curve) is a 22-slide PPT PowerPoint presentation (PPT), which you can download immediately upon purchase.

The Experience Curve, developed by Bruce Henderson and the Boston Consulting Group (BCG) in the 1960s while analyzing overall cost behavior. The premise of the Experience Curve is that for each doubling of "experience," there is a predictable reduction in our organization's unit production costs. Experience Curve In fact, research by BCG in the 1960s and 70s observed experience curve effects for various industries that ranged from 10-30%.

This classic Experience Curve is based on an experience in fulfilling demand. It remains valid today, especially in industries that are relatively stable, cost-sensitive, competitive, and production-intensive. With that said, in 2013, BCG published new thought leadership that modernized the Experience Curve to account for a second type of curve—one where experience is based on shaping demand. This adjustment is driven by how today's business climate is characterized by higher volatility, less stable industry structures, and much more frequent product launches driven by the Digital age and emerging technologies. The ability to gain and leverage experience on both curves is called ambidexterity. Ambidexterity is a powerful source of competitive advantage.

This presentation discusses both types of Experience Curves. Other topics covered include Henderson’s Law, Industry Diversity and Dynamism, and Experience Curve Effects.

This PPT provides a comprehensive analysis of the BCG Experience Curve, detailing its impact on cost reduction and competitive advantage. It includes a deep dive into Henderson’s Law and the mathematical underpinnings of the curve. The presentation also explores the eight primary drivers behind Experience Curve effects, such as technology-driven learning and product redesign. Key questions are posed to help executives evaluate the balance between fulfilling and shaping demand in their industries. Real-world examples, like Facebook's strategy to outpace Myspace, illustrate the practical application of these concepts. This resource is essential for leaders aiming to leverage experience for strategic gains.

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Source: Best Practices in Experience Curve, Ambidexterity PowerPoint Slides: BCG Experience Curve PowerPoint (PPT) Presentation, PPT Lab