Evaluation of strategic options Adjacencies Furger

Transcript:Evaluation of strategic options Adjacencies Furger:
Evaluation of strategic options Adjacencies Furger and Partner Inc Strategy Development Hottingerstrasse 21 8032 Zurich Fon +41 44 256 80 70 Fax +41 44 256 80 79 Mail furger@furger-partner.ch 2 Adjacency is defined as the distance to the core business The closer a target is to the core business, the better; due to the following factors Learning curve effects Reduced complexity Speed Strategic clarity Ability to drill down Adjacency logic requires a strong and clearly defined core business There are six primary adjacencies to expand a strong core business Product adjacencies Geographical Adjacencies Value Chain Adjacencies Channel Adjacencies Clients Adjacencies New Business Adjacencies Distant Adjacencies Middle Adjacencies Close Adjacencies 3 Core business as a basis for expansion opportunities 4 Adjacencies are defined for the existing core business New regions New stages in the value chain New Business Units New Products New customer segments New distribution channels Local International/Global Outsourcing Backward integration Forward integration Next generation Support Services Complementary products Novelties New segments Existing segments – not penetrated yet Existing segment – microsegmentation Distribution Direct Internet New Business Models New Substitutes New Competences 5 Criteria for the evaluation of adjacencies 6 Criteria for evaluating the distance to success Search for growth options(I/II) Search for growth options(II/II) 9 Assessment of the option : …………………… Distance to success Adjacency Evaluation of the options according to two dimensions: low low high high Adjacency to core business Distance to success Growth through diversification Expansion of core business Quick Wins New ideas Bundling of options to strategic directions low low high high Adjacency to core business Distance to success Growth through diversification Expansion of core business Quick Wins New ideas Your contact Ignaz Furger Furger and Partner INC Strategy Development Hottingerstrasse 21 CH – 8032 Zurich Fon +41 44 256 80 70 Fax +41 44 256 80 79 Mail furger@furger-partner.ch