This is a framework we recently used in a proposal for a client that wanted to look at a series of adjacent growth opportunities. The suggested approach was to look at these distinct market opportunities in two dimensions: Their potential to create value, and their links and synergies to the core system.
The vertical axis, value creation potential, will analyze key figures related to revenue, profitability, growth rates, but also competitive intensity, the cost of doing business (both in terms of capital investments required to get into the business and the ongoing costs to operate in the business). Finally, for many firms the evaluation of the attractiveness of an adjacent business should also include an evaluation of its risk profile (Is it a business with lots of ups and downs? Does it amplify the cycles of our current business or complement them? Etc.).
The horizontal axis evaluates the synergy potential between the new market segment and the core business. This is already broken down into client/market/distribution synergies vs. skills and system synergies. The latter tends to be overlooked, but is critically important in evaluating an adjacent market. Many industries today (technology, financial services, life sciences) rely largely on intellectual capabilities and/or on significant investment in large scale IT systems. The client and market synergies are traditionally analyzed by looking at the adjacent markets and trying to understand whether this market overlaps with the current business: Is it the same clients or new clients, do they use the same products or very different products?
Комментариев нет:
Отправить комментарий