Deloitte Corporate Growth Strategy Presentation Knowing the Market Drivers

For traditional growth strategy thinking, many people rely on the time-tested business framework Porter’s Five Forces, developed by Porter. In Porter’s Five Forces, we look into various industry forces that affect any vertical, which include internal rivalry, threat of new entrants, customer power, supplier negotiation power, and threat of substitutive and complementary products. By evaluating these industry forces, an organization can decide on its competitive strategy, which falls into either one of four buckets: cost leadership, differentiation strategy, cost focus, or differentiation focus.

Many popular approaches to growth are used, which can be bucketized the two buckets of expanding existing business scope and increasing value from current revenue streams. To build the value from current business, a business can improve upon its value proposition, improve customer relationship management, optimize pricing, enter new markets with its existing offerings, and optimize its product mix. To expand the business scope, a company can expand into new segments, expand into new categories, create new offerings, develop new brands, launch new formats and distribution channels, and expand regionally.

In developing a business case template , there are a number of important goals. You should ensure your resources are allocated to the areas of highest leverage. You should create the rational foundation for making change necessary. You should establish the full range of benefits to be achieved through implementation activities. You should provide the basis for calculating the return on investment and tracking immediate benefits to the net profit during the implementation stage. You should measure major leverage opportunities for the business.

The Consolidation Curve is often a framework in line with the principle that all industrial sectors consolidate and adhere to a similar course through the Four phases of: Opening, Scale, Focus, and Balance & Alliance. The length of the curve is different from industry to market. Any important tactical and also functional move must be examined intended for the industry’s stage in the Consolidation Endgame Curve. With having said that, it generally continues 20-25 years. Moreover, endgames positioning has the benefit of a guide for portfolio optimization. Employing the Endgame Curve as guidance, a business can improve its consolidation techniques and help merger integrations. A niche competitor can also determine the appropriate niche strategy to use and when is the better time to be acquired. As an illustration, the auto sector has existed for 100+ years and only at the end of stage 2 (Scale). This particular framework is based on a study of 25,000 businesses around the world, which represents 98% of the world wide market cap. The Endgame Curve shows that merger pursuits plus consolidation developments can be estimated.

Any great consulting firm has a toolbox of standard and modern business frameworks. Over the past 50 years, top consulting firms, including McKinsey Quarterly and Booz & Co, have structured problems into frameworks that are pervasively used in the corporate world today. Firms and strategy consultants use these frameworks to look at, analyze, and think about an eclectic assortment of business issues, that take place in different business situations. Many such frameworks and business notions hinge on the original thought leadership of Michael Porter, the founder of contemporary business strategy.

When a engagement has been backed by the business case ( both financially and non-financially) and is approved by the management team, the business case template is then continuously maintained and adjusted to monitor the engagement’s progress compared with the initial financial metrics and keyassumptions. This powerpoint then becomes a working document used during the initiative tracking process. Developing a business case is a thorough process, requiring both data-driven and qualitative research and analysis.

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