How can we reduce costs?
Should we build a new plant or expand existing facility?
- Objective: meet increased demand or profit gain
- Ability to implement: where is the plant? Easy to integrate?
Reaction
• supply
• competitors
Alternative:
• outsource or partnership
Company Info (Basic)
- What do they do?
- What are products?
- Size (Revenues)
- Market share?
- Customer segments
- Growth Trends (3yrs)
How can we increase revenue?
Turnaround
• business plan
• prioritize goals
– short vs long-term goals
– develop small wins
How should we sell this product?
Product: unique selling proposition
Price
Promotion: how to reach the customer?
Place: Where can the customer buy?
How can we increase profits?
Short-term
[Content]
Long-term
[Content]
Profit = Revenue - Cost
• Revenue: Product…
– Mix
– Shifts
• Costs: Fixed, Variable…
– Mix
– Shifts
– compare via benchmarking
Competitive Response
What changed?
• new product? market share? What should we do next?
• Directly / Competitors
– Collaborate
– Copy
– Steal talent
• Indirect
– Lock up suppliers / raw materials
– Build Loyalty
How much should our product cost?
• Goal?
– Make money or toehold?
Method:
• Cost to make = min
• Economic value = max
• Comparable products
– Substitutes
– Competitors
If we want to introduce a new product - what should we think about?
- Will our customers buy it?
- What do our competitors offer?
- How does the product fit into our product line?
- Can our client afford to implement?
Acquisitions / Divestitures
- Goal
- Price
- Due Diligence
- Exit Strategy
We want to enter a new market. What should we look at? (Clarify: Industry)
Goal
Market: Size and Growth
• Products
– pros / cons
• Client trends
Competitors
• Market Share
• Products
Barriers to entry
How can we grow our company?
product development
• increase
• diversify
volume
• marketing campaign
• distribution channels
Acquire competitor
