战略分析工具profitpool.PPT

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1、8/20/2023,Darral G.Clarke for BM 499,1,Profit Pools and Core Competence,Darral G ClarkeProfessor of ManagementThe Marriott SchoolBrigham Young University,8/20/2023,Darral G.Clarke for BM 499,2,Profit Pools:A Fresh Look at Strategy,Orit Gadiesh and James L.GilbertHarvard Business ReviewMay-June 1998,

2、8/20/2023,Darral G.Clarke for BM 499,3,THE PC INDUSTRYS PROFIT POOL,Value chain focusAxesVerticaloperating marginHorizontalshare of industry data,8/20/2023,Darral G.Clarke for BM 499,4,The Profit Pool Lens,The profit pool is the total profit earned in an industry at all points along the industrys va

3、lue chainSegment profitability may vary by customer group,product category,geographic market,or distribution channelProfit concentration may be very different than revenue concentrationShape of the profit pool reflects the competitive dynamics of a businessInteractions of companies and customersComp

4、etitive strategies of competitorsProduct pools are not stagnant,8/20/2023,Darral G.Clarke for BM 499,5,THE U.S.AUTO INDUSTRYS PROFIT POOL,100%,operating margin,source:Harvard Business Review,May-June 1998,auto rental,8/20/2023,Darral G.Clarke for BM 499,6,Profit Pools:Company Examples,CompaniesAutom

5、akersU-HaulElevators(OTIS)Harley DavidsonPolaroid,Core BusinessAuto manufacturingTruck RentalElevator ManufacturingMotorcyclesInstant Photography Cameras,Sources of Highest ROIAuto leasing,insurancePacking materials,storageServiceAccessories(consumer products),leasing,service,restaurantsFilm,8/20/20

6、23,Darral G.Clarke for BM 499,7,Managerial Implications,Focus on growth and market share can lead a company to focus on unprofitable segments of an industryTodays deep revenue revenue pool may be tomorrows dry hole.The goal should be to focus on profitable opportunitiesIndustry should be considered

7、more broadly than traditional definitionAutomobile industry includesComponent manufacture and supplyNew car assembly and deliveryNew car warrantee and serviceNew car financing and insuranceUsed car sales and service,8/20/2023,Darral G.Clarke for BM 499,8,Turbulent industries,Profit pools are especia

8、lly important and useful in industries undergoing deregulation and/or technological changeSuch changes can open new profit pool opportunities and drain old onesChoke points may change or be eliminatedOpportunities for either forward or vertical integration may emergeCurrent vertical integration may

9、be disintermediated,8/20/2023,Darral G.Clarke for BM 499,9,Creating and managing a profit pool,Profit pool analysis may indicate new opportunities or threatsImperativesBe open to a new perspective on your business and industryDeveloping new strategy may require overturning elements of the current st

10、rategyBe open to reevaluate the role played by current competitorsBe vigilant to identify possibility that new entrants may seek to enter your industry with radical strategies,8/20/2023,Darral G.Clarke for BM 499,10,Looking Ahead:Profit Pools and the Five Forces,Profit pools are computed by multiply

11、ing the size of the revenue by the unit profit marginEssentially an accounting process-no theoryMost valuable in situations in which external conditions are essential stable and/or unimportant(Often dominated by internal data alone)The five forces tells us(which will study next)the underlying determ

12、inants that determine both the revenue size and the unit profit marginThe profit drivers which allow us to forecast the direction of change,8/20/2023,Darral G.Clarke for BM 499,11,Marakon Runners,Thomas A.StewartFortuneSept.28,1998,8/20/2023,Darral G.Clarke for BM 499,12,Marakon Associatess Approach

13、 to Corporate Strategy,Consultants to many large corporationsCoca Cola,HP,GM,CitiCorp,etc.Clients have returns 3.1%higher than industry peer groupGoal is to increase shareholder value through analysis of economic profitDeep drilling in business data to measure value creationProduct segmentsCustomer

14、segments,8/20/2023,Darral G.Clarke for BM 499,13,How Strategy Happens,Learning where value is createdWaterfall charts by product and customer segmentsEvaluating strategyIndustry average profit per unitCompanys profit vs industry averageManaging valueCurrent strategyChange product focusChange custome

15、r focus,8/20/2023,Darral G.Clarke for BM 499,14,Learning where value is created,8/20/2023,Darral G.Clarke for BM 499,15,Evaluating Strategy,8/20/2023,Darral G.Clarke for BM 499,16,Managing for value,Currentstrategy,Changeproductfocus,Change Customerfocus,Value,8/20/2023,Darral G.Clarke for BM 499,17

16、,Application to our cases,Retail industry(Wal*Mart)Soft drink industry(Coca-Cola and PepsiCo)Steel(Nucor)and aluminum cans(CC&S)Hi tech(Intel,Cisco,and Dell)Video games(Nintendo)Web businesses(eBay and Yahoo!),8/20/2023,Darral G.Clarke for BM 499,18,The Core Competence of the Corporation,Prahalad,C.

17、K.and Gary HamelHarvard Business Review,May-June 1990,8/20/2023,Darral G.Clarke for BM 499,19,Core Competence,A Firm is made up of resourcespeople,patents,brand names,plant&equipment,processes,etcA competence is the ability to employ diverse skills and resources to perform tasks and activities.A cor

18、e competence is a broadly based and/or a broadly applied fundamental capability.,8/20/2023,Darral G.Clarke for BM 499,20,Competence and Technology,Competence is not the same as technologyCompetence requirestechnologiessocial organizationcollective learning,8/20/2023,Darral G.Clarke for BM 499,21,Cor

19、e competence questions:,What are we really good at?How can we build upon it?What do we need to be good at?,8/20/2023,Darral G.Clarke for BM 499,22,Characteristics of Effective Competencies,Durability:Technical equipment can be short lived.Reputation or knowledge may depreciate more slowly.Transparen

20、cy:The more complex the source of competence,the harder it is to imitate it.Transferability:The availability of resources to competitors.Replicability:A competitors internal ability to replicate a competence using available resources.,8/20/2023,Darral G.Clarke for BM 499,23,Choosing Competencies,How

21、 central is this competence to our success in the market?How long could we preserve our competitiveness in this business without this particular competence?What future opportunities would be foreclosed if we were to lose this particular competence?,8/20/2023,Darral G.Clarke for BM 499,24,Core Compet

22、ence and Core Products,8/20/2023,Darral G.Clarke for BM 499,25,A Hierarchy of Competencies,8/20/2023,Darral G.Clarke for BM 499,26,Building Strategy from Capabilities,Source:Robert M.Grant,“The Resource-Based Theory of Competitive Advantage,”California Management Review,Spring,1991,page 151.,8/20/20

23、23,Darral G.Clarke for BM 499,27,How to map your industrys profit pool,Orit Gadiesh and James L.GilbertHarvard Business ReviewMay-June 1998,8/20/2023,Darral G.Clarke for BM 499,28,A straight forward exercise with complications,Concept is straight forwardDefine value chain activitiesDetermine their s

24、ize and profitabilityApplication of concept is complicatedFinancial data doesnt correspond to value chain activitiesCompany data is aggregated across businessesProducts,customer purchases,channel volumes rarely match up with boundaries of an activityConsiderable creativity is required,8/20/2023,Darr

25、al G.Clarke for BM 499,29,Four step process,Define the poolDetermine the size of the poolDetermine the distribution of profitsReconcile the estimates,8/20/2023,Darral G.Clarke for BM 499,30,Four step process,8/20/2023,Darral G.Clarke for BM 499,31,What is“profit”anyway?,Can be thought of in three wa

26、ys(all of which may be relevant for profit pool analysis)Accounting profitReturn on investmentEconomic value added=after-tax operating profits cost of all invested capitalCash-flowEarnings before taking fixed-asset and capital costs into account,8/20/2023,Darral G.Clarke for BM 499,32,Example:Credit cards at RegionBank,8/20/2023,Darral G.Clarke for BM 499,33,RegionBanks Profit Pool Map,8/20/2023,Darral G.Clarke for BM 499,34,RegionBanks Profit Pool Mosaic,