Business levers Flashcards
What are the main business levers in Sanji’s framework?
- Market Attractiveness
- Competition
- Internal Capability
- Profitability/Financials
- Product
- Customer
- Risk
- Alternatives
What key questions should be asked about Market Attractiveness?
- How large is the market (size, revenue, population)?
- What is the growth rate?
- What are the key market trends?
- How can the market be segmented?
What key questions should be asked about Competition?
- Who are the competitors and their market shares?
- How easy/difficult is market entry/exit?
- Is competition fragmented or consolidated?
- What are competitors’ strengths/weaknesses?
- How might competitors react?
What key questions should be asked about Internal Capability?
- Does the client have required capabilities?
- What is the client’s unique competitive advantage?
- How significant are capability gaps?
- Are there synergies between existing and required capabilities?
What key questions should be asked about Profitability/Financials?
- What are the revenue and cost components?
- How can revenue be improved?
- How can costs be decreased?
- How long until profitability/break-even?
What key questions should be asked about Product?
- Does it meet customer needs/pain points?
- How does it compare to competitors’ products?
- How should it be priced?
- How should it be branded/positioned?
What key questions should be asked about Customer?
- Who are the customers and how can they be segmented?
- What are their needs and pain points?
- What is their willingness to pay?
What key questions should be asked about Risk?
- What are the potential risks and challenges?
- How can these risks be mitigated?
- What timelines and resources are needed for risk mitigation?
What key questions should be asked about Alternatives?
- What other opportunities or options might be worth considering?
- What comparison framework can be used to evaluate alternatives?
What aspects should be considered when analyzing market size?
- Total revenue
- Population size
- Geographic scope
- Potential for growth
What does ‘fragmented vs consolidated competition’ mean?
Fragmented means many small players in the market, while consolidated means few large players dominate the market
How should capability gaps be evaluated?
- Identify missing capabilities
- Assess significance of gaps
- Determine cost to acquire capabilities
- Evaluate timeline to develop capabilities
What are common ways to improve revenue?
- Adjust pricing strategy
- Increase quantity sold
- Enter new markets
- Add new product features
- Improve marketing and sales
What factors should be considered in customer segmentation?
- Demographics (age, education)
- Geographic location
- Behavioral patterns
- Purchasing power
- Needs and preferences
What types of risks should be considered in analysis?
- Reputational risks
- Legal/regulatory risks
- Financial risks
- Operational risks
- Market risks
How can product positioning be determined?
- Analyze target market
- Identify unique value proposition
- Compare with competitors
- Consider price point
- Define brand messaging
What factors affect market attractiveness?
- Market size
- Growth rate
- Profit margins
- Entry barriers
- Competitive intensity
- Regulatory environment
How should competitor reactions be anticipated?
- Analyze past behavior
- Assess their resources
- Consider their market position
- Evaluate their strategic priorities
- Review their recent investments
What elements should be included in financial analysis?
- Revenue streams
- Cost structure
- Break-even point
- Capital requirements
- Expected ROI
- Cash flow projections
