Entering a New Market
Competition
Market share
Market
Comparative products and services
Barriers to entry
Start from scratch
Entry Acquire an existing player
Joint venture/strategic alliance w/existing player
Industry Analysis
Life cycle? (growth, transision, maturity)
Performance, margins
Current industry structure Major players and market share
Industry changes (new players, new technology)
Drivers (brand, size, technology)
How many?
Suppliers Product availability
What's going on in their market?
Expanding or shrinking?
Future Mergers and acquisitions?
Barriers to entry or exit?
Mergers & Acquisitions
Increase market access
Diversify holdings
Objectives Pre-empt the competition
Tax advantages
Incorporate synergies
Fair? Affordable?
Price How to pay?
If the economy sours…?
What shape is the company in? The industry?
How secure are its markets and customers?
Due Diligence What are the margins?
Competitive response to acquisition
Legal issues
How long to keep it?
Exit strategies
Divest parts of the organization?
New Product
Special or proprietary?
Financing?
Patented?
Substitions?
Product
Advantages/Disadvantages
Place in product line
Cannibalizing our own products?
Replacing existing product?
Expanding customer base
Prompting competitive response
Market Strategy
Barriers to entry
Major players and market share
Who?
Customers How to reach them?
Retention- how to hold them?
How funded?
Financing Best allocation of funds?
Debt viable?
Pricing Strategies
Competitors' prices
Competitors' prices compared to ours
Competitive Analysis
Substitutions
Consumer buying habits
COGS
Cost-Based Pricing Breakeven point?
How much profit margin can we add?
Customers' Willingness to pay
Price-Based Costing Worth to customers compared to other things
Supply and Demand
Growth Strategies
Is the industry growing?
How are we growing compared to the industry?
Prices relative to competitors
Assessment
Competitors marketing and development
Which segments have the most potential?
Funding for higher growth
Increase distribution channels
Increase product line
Strategies
Invest in major marketing campagin
Diversity of products or services offered
New Business
Who is the competition and their market share?
Market Products comparison
Barriers to entry
Management
Marketing and strategic plan
Distribution channels
Cost/Benefit Analysis
Product
Customers
Finance
Competitive Response
New Product?
Why? Competitor's strategy changed?
Other competitor's increased market share
Acquire a competitor
Merge with competition
Strategy Copy competitor
Hire the competitor's management
Increase profile with marketing campaign
Increasing Sales
Growth relative to market share
Changes in market share
Assessment Customer polls
Prices competitive?
Competitor's strategies(marketing&product development)
Increase volume?
Increase amount of sales?
How?
Increases prices?
Create seasonal balance?
Reducing Costs
Get cost breakdown
Investigate for irregularities
Assessment
Benchmark competitors
Labor-saving technologies
Union wages, suppliers, materials,
Cost Analysis-Internal
economies of scale, increased support system
Economy, interest rates, government regulations,
Cost Analysis-External
transportation/shipping strikes
Increasing Profits
Identify revenue streams
Percentage of total revenue of each
Revenue P=(R-C)xVolume
Unusual balance?
Have percentages changed?
ID fixed costs
ID variable costs
Shifts in costs
Costs
Unusual costs?
Benchmark competitors
Reduce costs without damaging revenue streams
Expand into new areas
Increase sales (volume and force)
Volume Increase marketing
Reduce prices
Imrpove customer service
Turnaround
Learn about company
Review services, products, finances
Secure funding
Review talent and culture
Strategy Determine ST/LT goals
Business plan
Reassure clients, suppliers, distributors
Prioritize goals and develop some small
success for momentum
