专业策略分析工具

1、专业策略分析工具Profit Pools: A Fresh Look at StrategyOrit Gadiesh and James L. GilbertHarvard Business ReviewMay-June 19982022/7/162Darral G. Clarke for BM 499THE PC INDUSTRYS PROFIT POOLValue chain focusAxesVerticaloperating marginHorizontalshare of industry data40%30201000100%share of industry revenuemic

2、roprocessorsother componentspersonal computerssoftwareperipheralsservicesThe value chain for the PC industry includes six key activities; the profitability of the activities varies widely. Manufacturers compete in the largest but least-profitable segment of the chain.2022/7/163Darral G. Clarke for B

3、M 499The Profit Pool LensThe profit pool is the total profit earned in an industry at all points along the industrys value chainSegment profitability may vary by customer group, product category, geographic market, or distribution channelProfit concentration may be very different than revenue concen

4、trationShape of the profit pool reflects the competitive dynamics of a businessInteractions of companies and customersCompetitive strategies of competitorsProduct pools are not stagnant2022/7/164Darral G. Clarke for BM 499THE U.S. AUTO INDUSTRYS PROFIT POOL100%operating marginsource: Harvard Busines

5、s Review, May-June 1998auto rental25%1510500share of industry revenueauto manufacturingnew car dealersused car dealersauto loansauto insuranceaftermarket parts20leasingwarrantygasolineservice repairThe automotive industry encompasses many value-chain activities. The way that profits and revenues are

6、 distributed among these activities varies greatly. The most profitable areas of the car business are not the ones that generate the biggest revenues.2022/7/165Darral G. Clarke for BM 499Profit Pools: Company ExamplesCompaniesAutomakersU-HaulElevators (OTIS)Harley DavidsonPolaroidCore BusinessAuto m

7、anufacturingTruck RentalElevator ManufacturingMotorcyclesInstant Photography CamerasSources of Highest ROIAuto leasing, insurancePacking materials, storageServiceAccessories (consumer products), leasing, service, restaurantsFilm2022/7/166Darral G. Clarke for BM 499Managerial ImplicationsFocus on gro

8、wth and market share can lead a company to focus on unprofitable segments of an industryTodays deep revenue revenue pool may be tomorrows dry hole.The goal should be to focus on profitable opportunitiesIndustry should be considered more broadly than traditional definitionAutomobile industry includes

9、Component manufacture and supplyNew car assembly and deliveryNew car warrantee and serviceNew car financing and insuranceUsed car sales and service2022/7/167Darral G. Clarke for BM 499Turbulent industriesProfit pools are especially important and useful in industries undergoing deregulation and/or te

10、chnological changeSuch changes can open new profit pool opportunities and drain old onesChoke points may change or be eliminatedOpportunities for either forward or vertical integration may emergeCurrent vertical integration may be disintermediated2022/7/168Darral G. Clarke for BM 499Creating and man

11、aging a profit poolProfit pool analysis may indicate new opportunities or threatsImperativesBe open to a new perspective on your business and industryDeveloping new strategy may require overturning elements of the current strategyBe open to reevaluate the role played by current competitorsBe vigilan

12、t to identify possibility that new entrants may seek to enter your industry with radical strategies 2022/7/169Darral G. Clarke for BM 499Looking Ahead: Profit Pools and the Five ForcesProfit pools are computed by multiplying the size of the revenue by the unit profit marginEssentially an accounting

13、process- no theoryMost valuable in situations in which external conditions are essential stable and/or unimportant(Often dominated by internal data alone)The five forces tells us (which will study next)the underlying determinants that determine both the revenue size and the unit profit marginThe pro

14、fit drivers which allow us to forecast the direction of change2022/7/1610Darral G. Clarke for BM 499Marakon RunnersThomas A. StewartFortuneSept. 28, 19982022/7/1611Darral G. Clarke for BM 499Marakon Associatess Approach to Corporate StrategyConsultants to many large corporationsCoca Cola, HP, GM, Ci

15、tiCorp, etc.Clients have returns 3.1% higher than industry peer groupGoal is to increase shareholder value through analysis of economic profitDeep drilling in business data to measure value creationProduct segmentsCustomer segments2022/7/1612Darral G. Clarke for BM 499How Strategy HappensLearning wh

16、ere value is createdWaterfall charts by product and customer segmentsEvaluating strategyIndustry average profit per unitCompanys profit vs industry averageManaging valueCurrent strategyChange product focusChange customer focus2022/7/1613Darral G. Clarke for BM 499Learning where value is createdProdu

17、ct segmentsCustomer segmentsProfit/loss ($ per unit)Volume (units)Volume (units)02022/7/1614Darral G. Clarke for BM 499Evaluating StrategyCompany profit per unitIndustry-average profit per unit2022/7/1615Darral G. Clarke for BM 499Managing for valueCurrentstrategyChangeproductfocusChange Customerfoc

18、usValue2022/7/1616Darral G. Clarke for BM 499Application to our casesRetail industry (Wal*Mart)Soft drink industry (Coca-Cola and PepsiCo) Steel (Nucor) and aluminum cans (CC&S)Hi tech (Intel, Cisco, and Dell)Video games (Nintendo)Web businesses (eBay and Yahoo!)2022/7/1617Darral G. Clarke for BM 49

19、9The Core Competence of the CorporationPrahalad, C. K. and Gary HamelHarvard Business Review, May-June 19902022/7/1618Darral G. Clarke for BM 499Core CompetenceA Firm is made up of resourcespeople, patents, brand names, plant &equipment, processes, etcA competence is the ability to employ diverse sk

20、ills and resources to perform tasks and activities.A core competence is a broadly based and/or a broadly applied fundamental capability. 2022/7/1619Darral G. Clarke for BM 499Competence and TechnologyCompetence is not the same as technologyCompetence requirestechnologiessocial organizationcollective

21、 learning2022/7/1620Darral G. Clarke for BM 499Core competence questions:What are we really good at?How can we build upon it?What do we need to be good at?2022/7/1621Darral G. Clarke for BM 499Characteristics of Effective CompetenciesDurability: Technical equipment can be short lived. Reputation or

22、knowledge may depreciate more slowly.Transparency: The more complex the source of competence, the harder it is to imitate it.Transferability: The availability of resources to competitors.Replicability: A competitors internal ability to replicate a competence using available resources.2022/7/1622Darr

23、al G. Clarke for BM 499Choosing CompetenciesHow central is this competence to our success in the market?How long could we preserve our competitiveness in this business without this particular competence?What future opportunities would be foreclosed if we were to lose this particular competence?2022/

24、7/1623Darral G. Clarke for BM 499Core Competence and Core Products2022/7/1624Darral G. Clarke for BM 499A Hierarchy of Competencies2022/7/1625Darral G. Clarke for BM 499Building Strategy from CapabilitiesStrategyCapabilitiesResources1. Identify resources, appraiserelative strengths and weaknesses. L

25、everage use of resources2. Identify capabilities. What do we domore effectively than competitors? Identify resource inputs to capabilities.3. Appraise rent-generating potential resources and capabilities in terms of:sustainable advantage, inappropriability4. Select strategy that best exploits the fi

26、rms resources and capabilities rela-tive to external opportunities.5. Identify resourcegaps that need to befilled.Invest in replenishing,augmenting, and up-grading the firmsresource base.CompetitiveAdvantageSource: Robert M. Grant, “The Resource-Based Theory of Competitive Advantage,”California Mana

27、gement Review, Spring,1991, page 151.2022/7/1626Darral G. Clarke for BM 499How to map your industrys profit poolOrit Gadiesh and James L. GilbertHarvard Business ReviewMay-June 19982022/7/1627Darral G. Clarke for BM 499A straight forward exercise with complicationsConcept is straight forwardDefine v

28、alue chain activitiesDetermine their size and profitabilityApplication of concept is complicatedFinancial data doesnt correspond to value chain activitiesCompany data is aggregated across businessesProducts, customer purchases, channel volumes rarely match up with boundaries of an activityConsiderab

29、le creativity is required2022/7/1628Darral G. Clarke for BM 499Four step processDefine the poolDetermine the size of the poolDetermine the distribution of profitsReconcile the estimates2022/7/1629Darral G. Clarke for BM 499Four step processDefine the poolDetermine the size of the poolDetermine profi

30、t distributionReconcile the estimatesTask: determine which value-chain activity influence profits now and in the futureDevelop a baseline estimate of cumulative profits generated by all profit pool activitiesDevelop estimate of the profits generated by each activityCompare the outputs of steps 2 & 3

31、GuidelinesTake a broad view of the value chain(beyond traditional industry definition)Seek a rough but accurate estimateShift between aggregation and disaggregation in your analysisIf numbers dont add up,Check assumption and calculationsExamine industry from three perspective: own, other players, cu

32、stomersTake easiest route: go where the data areDo own economics first, then large pure players, large mixed, smallerCollect additional dataDont disaggregate more than necessaryTake at least two viewpoints: company level and product levelUse proxy measures where necessaryResolve inconsistenciesdont

33、ignore themOutputProfit pool listEstimate of total pool profits, (range)Point estimate of profits for each value chain activityFinal estimates of activity and total pool profits2022/7/1630Darral G. Clarke for BM 499What is “profit” anyway?Can be thought of in three ways (all of which may be relevant for profit pool analysis)Accounting profitReturn on investmentEconomic