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Question 1

How much opportunity is in each target segment?

Answer 1

A Gap Analysis defines the future potential left in each segments.

Question 2

What is the industry market potential?

Answer 2

Represents the maximum possible distribution volume for the focal product in a segment.

Question 3

IMP is a function of what?

Answer 3

• All potential and existing customers who could use the focal product
• The product is used as often as it can be
• The product is used to its fullest extent.

Question 4

What are the relevant industry sales?

Answer 4

Is a function of how many customers exist in the product segment.

Question 5

What is the difference between IMP and current distribution (CD)?

Answer 5

The growth opportunity that an organization has in a given segment.

Question 6

What are the four gaps that determine the growth opportunity for your organization in each segment?

Answer 6

• Competitive gap
• Usage gap
• Supply chain gap
• Product line gap

Question 7

What is the competitive gap?

Answer 7

Can be closed by stealing competitor’s customers and customers from those that offer substitute products.

Question 8

What is the usage gap?

Answer 8

Can be closed by converting non-users and increasing usage rates by those already using the products.

Question 9

What is the supply chain gap?

Answer 9

Can be closed by expanding the supply of the product.

Question 10

What is the product-line gap?

Answer 10

Can be closed by filling out the product line in terms of length and depth.

Question 11

How do I develop a compelling product strategy to leverage any gaps identified in the gap analysis?

Answer 11

The first step is to determine to what extent the business unit should pursue a cost leader strategy or a differentiation strategy.

Question 12

How do I know if I should execute as a cost leader or as a differentiatior?

Answer 12

The decision depends on the business unit’s differentiation capability and economic cost capability vis a vie the competition.

Question 13

How is the development of compelling product strategy best approached?

Answer 13

The development of compelling product strategy is best approached systematically.

Question 14

What are the three qualities that characterise an effective strategic profile?

Answer 14

• Focus
• Divergence
• Compelling tagline

Question 15

What is the strategy canvas?

Answer 15

The strategy canvas is a tool that helps analyse strategic profiles in terms of focus and divergence.

Question 16

What is the customer benefits map?

Answer 16

The customer benefits map is a tool to assess a new offering’s benefits.
It helps to analyse the main experience areas that the new offering provide to customers.