strategic modeling and business analysis

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Strategic Modeling & Business Analytics

By Vimal T. Patel

Healthcare Sales & Marketing Consultant

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Market Snapshot - Porter’s Five Forces

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Five Forces of Competition Model

PotentialEntrants

Buyers

Substitutes

Suppliers

IndustryCompetitors

Rivalry AmongExisting Firms

Threat of Substitute Products or Services

Threat ofNew Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

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Five Forces of Competition Model (Expanded)

New Entrants

Buyers

Substitutes

Suppliers

IndustryCompetitors

Intensityof Rivalry

Threat of Substitutes

Threat ofNew Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Entry BarriersEconomics of ScaleProprietary product differencesBrand identityCapital requirementsAccess to distributionAbsolute cost advantages

Proprietary learning curveAccess to necessary inputsProprietary low-cost product design

Government policyExpected retaliation

Rivalry DeterminantsIndustry growthFixed (or stage) costs/value addedIntermittent overcapacityProduct differencesBrand identitySwitching costsConcentration and balanceInformational complexityDiversity of competitorsCorporate stakesExit barriers

Determinants of Supplier PowerDifferentiation of inputsSwitching costs of suppliers and firms in the industryPresence of substitute inputsSupplier concentrationImportance of volume to supplierCost relative to total purchases in the industryImpact of inputs on cost or differentiationThreat of forward integration relative to threat of

backward integration by firms in the industry

Determinants of Substitution ThreatRelative price performance of substitutesSwitching costsBuyer propensity to substitute

Bargaining LeverageBuyer concentration versus

firm concentrationBuyer volumeBuyer switching costs

relative to firm switching costs

Buyer informationAbility to backward

integrateSubstitute productsPull-through

Price SensitivityPrice/total purchasesProduct differencesBrand identityImpact on

quality/performanceBuyer profitsDecision makers’

incentives

Determinants of Buyer Power

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Strategic Outlook

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Market Analysis

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Brand Analysis

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SWOT Matrix

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Engaging the Market

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Innovation Model

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Executing on Innovation & Performance Management

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Market Share Review

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Upstream Market Review

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Development & Engineering Solutions

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Progress Management

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Strategic Planning

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Sample Brand Audit Sheet

strongfun

weak

value

Market Position:Dominant (#1 in the region)Strong (#2 or #3 in the region)Weak (#4 or lower in the region)NP – Not present in the region

Brand Positioning:Quality, value, upscale, fun,adventurous, premium, safe, reliable, trustworthy, aggressive,cheap, etc.

Cash Status:Cash generatorCash neutralCash user

North America Latin America Asia Pacific Western Europe Eastern Europe

A 15% 17% 20%

cash generator

B 7% 8% 10% cash user

C 3%

D 1%

E > 1%

F > 1%

Percentage of Profits

Cash StatusBrand

Global MarketShare

Regional Presence

Percentage of Sales

Brand Analysis

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Factor Analysis

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Portfolio Analysis

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Acknowledgements

»Harvard Business Review, Zantheus, Wikipedia, & Friends