When strategic recovery requires more than cost cutting
How turnaround strategies can rebuild competitive position by resetting the portfolio, operating priorities and sources of future growth.
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Articles
How turnaround strategies can rebuild competitive position by resetting the portfolio, operating priorities and sources of future growth.
Read articleHow companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Read articleFocus
Revenue potential alone says little about attractiveness when bargaining power, acquisition effort, implementation and cost to serve vary materially.
A strategically attractive move can become economically destructive when the likely reactions of rivals are excluded from the decision.
Strategic challenges
As distribution expands, intermediary margins, inventory requirements and service costs can become as important as underlying product demand.
Revenue may remain healthy after technology, customer behaviour or competitive alternatives have begun weakening a product's future role.
POV
A company can gain share and still lose economically when rivalry forces pricing, investment or service levels beyond sustainable returns.
Defensible positioning must eventually connect to capabilities, economics, assets or choices that are harder to replicate than language.
Strategic impact
A shift in regulation, technology or bargaining power can move economic value between participants without changing total industry demand.
Choosing which customers, attributes or economics not to optimise can create a more coherent and defensible basis for advantage.
What we observe
We frequently see businesses emphasise differences customers can recognise but have little reason to value or pay for.
We frequently see new businesses constrained by processes, economics and incentives designed for an established operation rather than a venture.