Bain战略分析工具profit pool

ProfitPoolsandCoreCompetenceDarralGClarkeProfessorofManagementTheMarriottSchoolBrighamYoungUniversity9/16/20231DarralG.ClarkeforBM499ProfitPools:AFreshLookatStrategyOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19989/16/20232DarralG.ClarkeforBM499THEPCINDUSTRY’SPROFITPOOLValuechainfocusAxesVertical—operatingmarginHorizontal—shareofindustrydata40%30201000100%shareofindustryrevenuemicroprocessorsothercomponentspersonalcomputerssoftwareperipheralsservicesThevaluechainforthePCindustryincludessixkeyactivities;theprofitabilityoftheactivitiesvarieswidely.Manufacturerscompeteinthelargestbutleast-profitablesegmentofthechain.9/16/20233DarralG.ClarkeforBM499TheProfitPoolLensTheprofitpoolisthetotalprofitearnedinanindustryatallpointsalongtheindustry’svaluechainSegmentprofitabilitymayvarybycustomergroup,productcategory,geographicmarket,ordistributionchannelProfitconcentrationmaybeverydifferentthanrevenueconcentrationShapeoftheprofitpoolreflectsthecompetitivedynamicsofabusinessInteractionsofcompaniesandcustomersCompetitivestrategiesofcompetitorsProductpoolsarenotstagnant9/16/20234DarralG.ClarkeforBM499THEU.S.AUTOINDUSTRY’SPROFITPOOL100%operatingmarginsource:HarvardBusinessReview,May-June1998autorental25%1510500shareofindustryrevenueautomanufacturingnewcardealersusedcardealersautoloansautoinsuranceaftermarketparts20leasingwarrantygasolineservicerepairTheautomotiveindustryencompassesmanyvalue-chainactivities.Thewaythatprofitsandrevenuesaredistributedamongtheseactivitiesvariesgreatly.Themostprofitableareasofthecarbusinessarenottheonesthatgeneratethebiggestrevenues.9/16/20235DarralG.ClarkeforBM499ProfitPools:CompanyExamplesCompaniesAutomakersU-HaulElevators(OTIS)HarleyDavidsonPolaroidCoreBusinessAutomanufacturingTruckRentalElevatorManufacturingMotorcyclesInstantPhotographyCamerasSourcesofHighestROIAutoleasing,insurancePackingmaterials,storageServiceAccessories(consumerproducts),leasing,service,restaurantsFilm9/16/20236DarralG.ClarkeforBM499ManagerialImplicationsFocusongrowthandmarketsharecanleadacompanytofocusonunprofitablesegmentsofanindustryToday’sdeeprevenuerevenuepoolmaybetomorrow’sdryhole.ThegoalshouldbetofocusonprofitableopportunitiesIndustryshouldbeconsideredmorebroadlythantraditionaldefinitionAutomobileindustryincludesComponentmanufactureandsupplyNewcarassemblyanddeliveryNewcarwarranteeandserviceNewcarfinancingandinsuranceUsedcarsalesandservice9/16/20237DarralG.ClarkeforBM499TurbulentindustriesProfitpoolsareespeciallyimportantandusefulinindustriesundergoingderegulationand/ortechnologicalchangeSuchchangescanopennewprofitpoolopportunitiesanddrainoldonesChokepointsmaychangeorbeeliminatedOpportunitiesforeitherforwardorverticalintegrationmayemergeCurrentverticalintegrationmaybedisintermediated9/16/20238DarralG.ClarkeforBM499CreatingandmanagingaprofitpoolProfitpoolanalysismayindicatenewopportunitiesorthreatsImperativesBeopentoanewperspectiveonyourbusinessandindustryDevelopingnewstrategymayrequireoverturningelementsofthecurrentstrategyBeopentoreevaluatetheroleplayedbycurrentcompetitorsBevigilanttoidentifypossibilitythatnewentrantsmayseektoenteryourindustrywithradicalstrategies9/16/20239DarralG.ClarkeforBM499LookingAhead:ProfitPoolsandtheFiveForcesProfitpoolsarecomputedbymultiplyingthesizeoftherevenuebytheunitprofitmarginEssentiallyanaccountingprocess--notheoryMostvaluableinsituationsinwhichexternalconditionsareessentialstableand/orunimportant(Oftendominatedbyinternaldataalone)Thefiveforcestellsus(whichwillstudynext)theunderlyingdeterminantsthatdetermineboththerevenuesizeandtheunitprofitmarginTheprofitdriverswhichallowustoforecastthedirectionofchange9/16/202310DarralG.ClarkeforBM499MarakonRunnersThomasA.StewartFortuneSept.28,19989/16/202311DarralG.ClarkeforBM499MarakonAssociates’sApproachtoCorporateStrategyConsultantstomanylargecorporationsCocaCola,HP,GM,CitiCorp,etc.Clientshavereturns3.1%higherthanindustrypeergroupGoalistoincreaseshareholdervaluethroughanalysisofeconomicprofitDeepdrillinginbusinessdatatomeasurevaluecreationProductsegmentsCustomersegments9/16/202312DarralG.ClarkeforBM499HowStrategyHappensLearningwherevalueiscreatedWaterfallchartsbyproductandcustomersegmentsEvaluatingstrategyIndustryaverageprofitperunitCompany’sprofitvsindustryaverageManagingvalueCurrentstrategyChangeproductfocusChangecustomerfocus9/16/202313DarralG.ClarkeforBM499LearningwherevalueiscreatedProductsegmentsCustomersegmentsProfit/loss($perunit)Volume(units)Volume(units)09/16/202314DarralG.ClarkeforBM499EvaluatingStrategyCompanyprofitperunitIndustry-averageprofitperunit9/16/202315DarralG.ClarkeforBM499ManagingforvalueCurrentstrategyChangeproductfocusChangeCustomerfocusValue9/16/202316DarralG.ClarkeforBM499ApplicationtoourcasesRetailindustry(Wal*Mart)Softdrinkindustry(Coca-ColaandPepsiCo)Steel(Nucor)andaluminumcans(CC&S)Hitech(Intel,Cisco,andDell)Videogames(Nintendo)Webbusinesses(eBayandYahoo!)9/16/202317DarralG.ClarkeforBM499TheCoreCompetenceoftheCorporationPrahalad,C.K.andGaryHamelHarvardBusinessReview,May-June19909/16/202318DarralG.ClarkeforBM499CoreCompetenceAFirmismadeupofresourcespeople,patents,brandnames,plant&equipment,processes,etcAcompetenceistheabilitytoemploydiverseskillsandresourcestoperformtasksandactivities.Acorecompetenceisabroadlybasedand/orabroadlyappliedfundamentalcapability.9/16/202319DarralG.ClarkeforBM499CompetenceandTechnologyCompetenceisnotthesameastechnologyCompetencerequirestechnologiessocialorganizationcollectivelearning9/16/202320DarralG.ClarkeforBM499Corecompetencequestions:Whatarewereallygoodat?Howcanwebuilduponit?Whatdoweneedtobegoodat?9/16/202321DarralG.ClarkeforBM499CharacteristicsofEffectiveCompetenciesDurability:Technicalequipmentcanbeshortlived.Reputationorknowledgemaydepreciatemoreslowly.Transparency:Themorecomplexthesourceofcompetence,theharderitistoimitateit.Transferability:Theavailabilityofresourcestocompetitors.Replicability:Acompetitor’sinternalabilitytoreplicateacompetenceusingavailableresources.9/16/202322DarralG.ClarkeforBM499ChoosingCompetenciesHowcentralisthiscompetencetooursuccessinthemarket?Howlongcouldwepreserveourcompetitivenessinthisbusinesswithoutthisparticularcompetence?Whatfutureopportunitieswouldbeforeclosedifweweretolosethisparticularcompetence?9/16/202323DarralG.ClarkeforBM499CoreCompetenceandCoreProducts9/16/202324DarralG.ClarkeforBM499AHierarchyofCompetencies9/16/202325DarralG.ClarkeforBM499BuildingStrategyfromCapabilitiesStrategyCapabilitiesResources1.Identifyresources,appraiserelativestrengthsandweaknesses.Leverageuseofresources2.Identifycapabilities.Whatdowedomoreeffectivelythancompetitors?Identifyresourceinputstocapabilities.3.Appraiserent-generatingpotentialresourcesandcapabilitiesintermsof:sustainableadvantage,inappropriability4.Selectstrategythatbestexploitsthefirm’sresourcesandcapabilitiesrela-tivetoexternalopportunities.5.Identifyresourcegapsthatneedtobefilled.Investinreplenishing,augmenting,andup-gradingthefirm’sresourcebase.CompetitiveAdvantageSource:RobertM.Grant,“TheResource-BasedTheoryofCompetitiveAdvantage,”CaliforniaManagementReview,Spring,1991,page151.9/16/202326DarralG.ClarkeforBM499Howtomapyourindustry’sprofitpoolOritGadieshandJamesL.GilbertHarvardBusinessReviewMay-June19989/16/202327DarralG.ClarkeforBM499AstraightforwardexercisewithcomplicationsConceptisstraightforwardDefinevaluechainactivitiesDeterminetheirsizeandprofitabilityApplicationofconceptiscomplicatedFinancialdatadoesn’tcorrespondtovaluechainactivitiesCompanydataisaggregatedacrossbusinessesProducts,customerpurchases,channelvolumesrarelymatchupwithboundariesofanactivityConsiderablecreativityisrequired9/16/202328DarralG.ClarkeforBM499FourstepprocessDefinethepoolDeterminethesizeofthepoolDeterminethedistributionofprofitsReconciletheestimates9/16/202329DarralG.ClarkeforBM499FourstepprocessDefinethepoolDeterminethesizeofthepoolDetermineprofitdistributionReconciletheestimatesTask:determinewhichvalue-chainactivityinfluenceprofitsnowandinthefutureDevelopabaselineestimateofcumulativeprofitsgeneratedbyallprofitpoolactivitiesDevelopestimateoftheprofitsgeneratedbyeachactivityComparetheoutputsofsteps2&3GuidelinesTakeabroadviewofthevaluechain(beyondtraditionalindustrydefinition)SeekaroughbutaccurateestimateShiftbetweenaggregationanddisaggregationinyouranalysisIfnumbersdon’taddup,CheckassumptionandcalculationsExamineindustryfromthreeperspective:own,otherplayers,customersTakeeasiestroute:gowherethedataareDoowneconomicsfirst,thenlargepureplayers,largemixed,smallerCollectadditionaldataDon’tdisaggregatemorethannecessaryTakeatleasttwoviewpoints:companylevelandproductlevelUseproxymeasureswherenecessaryResolveinconsistencies—don’tignorethemOutputProfitpoollistEstimateoftotalpoolprofits,(range)PointestimateofprofitsforeachvaluechainactivityFinalestimatesofactivityandtotalpoolprofits9/16/202330DarralG.ClarkeforBM499Whatis“profit”anyway?Canbethoughtofinthreeways(allofwhichmayberelevantforprofitpoolanalysis)AccountingprofitReturnoninvestmentEconomicvalueadded=after-taxoperatingprofits–c