Article
Designing the next business model before the current one plateaus
How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Make strategic choices around how value is created, distributed and disrupted within the industry structure
We develop industry strategies that connect sector economics, structural change, competitive dynamics and company-specific sources of advantage.
Industries differ fundamentally in how they create and distribute value. Capital intensity, regulation, customer concentration, technology cycles, supply dependencies and ecosystem structures can make an attractive strategy in one sector economically unsound in another. These structures also evolve: profit pools migrate, value-chain boundaries move and new technologies can redistribute power among participants. Strategy therefore requires more than applying general frameworks to sector data. It requires understanding the mechanisms that determine industry economics, identifying which are changing and deciding how the business should reposition as the underlying structure evolves.
Focus
Where does the industry actually make money?
Revenue and market share can obscure substantial differences in returns across activities, customer groups and positions in the value chain.
Read nowStrategic Challenges
Industry boundaries are becoming less reliable
Technology, convergence and new business models increasingly allow competitors from adjacent sectors to enter established value pools.
Read nowStrategic Impacts
Structural change redistributes advantage
A shift in regulation, technology or bargaining power can move economic value between participants without changing total industry demand.
Read nowObserved Patterns
Companies often benchmark peers instead of questioning the industry model
We frequently see strategy focused on outperforming incumbents while deeper changes are altering where future profit will be created.
Read nowStrategic Challenges
Industry boundaries are becoming less reliable
Technology, convergence and new business models increasingly allow competitors from adjacent sectors to enter established value pools.
Read nowStrategic Impacts
Structural change redistributes advantage
A shift in regulation, technology or bargaining power can move economic value between participants without changing total industry demand.
Read nowObserved Patterns
Companies often benchmark peers instead of questioning the industry model
We frequently see strategy focused on outperforming incumbents while deeper changes are altering where future profit will be created.
Read nowPOV
The best position today may sit in the wrong part of tomorrow's value chain
Strong execution cannot preserve advantage indefinitely when the underlying structure determining value capture is moving elsewhere.
Read nowOur approach
Build strategy from the mechanisms that determine industry economics rather than applying the same competitive logic across fundamentally different sectors
Our approach starts by decomposing the industry's structure, value chain, profit pools, customer economics and sources of bargaining power. We examine how regulation, technology, capital requirements, supply conditions and ecosystem relationships shape competitive behaviour and returns. Structural changes are assessed for their potential to move value between activities, alter entry barriers or weaken established advantages. We then connect these industry dynamics with the client's position, capabilities and economics to develop strategic alternatives. The resulting choices define where in the industry to participate, how to compete and which structural shifts deserve investment or repositioning.
The data and estimates presented are indicative and intended for illustrative purposes. Actual outcomes may vary based on each company’s specific context, market conditions, operating model, implementation choices, and the quality and consistency of execution, including actions undertaken by the client.
Keypillars
Explore the key pillars that define this capability and shape how we create focused, measurable business impact.
Industry economics
Value creation, profit pools and structural returns are examined to understand what determines economic attractiveness.
Structural dynamics
Technology, regulation and ecosystem change are assessed for their potential to reshape industry boundaries and competitive power.
Strategic position
Industry dynamics are connected with company capabilities and economics to determine where and how the business should compete.
If your industry's profit pool moved tomorrow, would your strategy follow it or defend where value used to be?
Get in touch with our Industry strategy team to examine structural change, industry economics and future sources of value.
Get in touchStrategic Framework
Explore our Strategic Framework
Explore our strategic framework applied to page_title and discover which model we apply to help you achieve your goals and objectives.
Discover our framework01. Industry framing
Define industry boundaries, participants and the structural questions that matter for strategic decision-making.
06. Industry roadmap
Sequence strategic moves and capability investments around expected changes in industry structure and value creation.
05. Strategic options
Develop alternative positions across activities, value pools, business models and emerging industry opportunities.
02. Economic mapping
Analyse value chains, profit pools, cost structures and bargaining power across the industry system.
03. Structural forces
Assess technology, regulation, demand and ecosystem changes capable of altering industry economics or boundaries.
04. Position assessment
Determine how the company's capabilities, economics and current position interact with evolving industry structures.
How we help
Translate industry economics and structural change into choices about where to participate, how to compete and where future value may concentrate
We address strategic questions involving industry structure, value chains, profit pools, sector economics and structural transformation. Work can include industry strategy development, value-chain strategy, profit-pool analysis, industry convergence, sector repositioning and structural scenario design. We examine how regulation, technology, customer behaviour, supply conditions and ecosystem shifts could redistribute value or competitive power. The work can support established industry participants, new entrants, diversification into unfamiliar sectors or businesses reconsidering their position as traditional industry boundaries change.
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Industry strategy development
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Industry structure strategy
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Industry value-chain strategy
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Industry profit-pool strategy
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Industry convergence strategy
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Sector repositioning strategy
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Industry disruption strategy
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Industry ecosystem strategy
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Industry scenario strategy
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Industry transformation strategy
Explore our FAQs
Find answers to the most common questions about this service, including key features, processes, and practical considerations. Explore our FAQs for additional insights and guidance.
It defines how a business should compete and create value given the specific economics and structure of its industry.
Industry strategy applies strategic choices to sector-specific economics, structures, value chains and sources of advantage.
It is the distribution of economic profit across activities, customer groups or positions within an industry's value system.
It determines where value is created, where bargaining power sits and which participants are positioned to capture returns.
Technology can alter costs, entry barriers, capabilities, customer behaviour and the distribution of value across participants.
Regulation can change economics, entry conditions, operating models and the relative position of industry participants.
It occurs when previously distinct sectors increasingly compete, collaborate or participate in overlapping value pools.
Structural shifts in economics, technology, regulation or competitive boundaries can require a different strategic position.
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Read articleFocus
Where does the industry actually make money?
Revenue and market share can obscure substantial differences in returns across activities, customer groups and positions in the value chain.
Which customers are actually worth winning?
Revenue potential alone says little about attractiveness when bargaining power, acquisition effort, implementation and cost to serve vary materially.
Strategic challenges
Scale changes the economics of customer access
As distribution expands, intermediary margins, inventory requirements and service costs can become as important as underlying product demand.
Most markets contain more claims than actual differentiation
Competitors frequently converge on similar promises because communication evolves faster than the underlying business model or capabilities.