BusinessDefinition(英文版)(ppt60页)

Compete in both segments to take advantage of synergies
Do not compete in both segments
5
Business Definition
Why Bain Uses Business Definition
The correct business definition can lead to case-cracking insights.
Business Definition
•The business definition concept •Applications •Business definition steps •Client examples
–Bunker Hill Door Systems –JJR Industrial Coatings
bc
Business Definition
Author: Contributors:
Reviewer:
Gisele Garraway
Susan Caraviello, Paul DiPaola, and Todd Senturia Todd Senturia March 1998
Copyright© 1998 Bain & Company, Inc.
•Serves as the foundation for strategic analysis and sound
decisቤተ መጻሕፍቲ ባይዱon making
4
Business Definition
One Business vs. Separate Businesses
If two business segments have the same customers, the same cost structure, and the same competitors, they are one business. If they are different on all of these dimensions, they are separate businesses.
• Same customers • Same cost structure • Same competitors
• Different customers • Different cost structure • Different competitors
One business
Separate businesses
Companies that define their businesses incorrectly make poor strategic decisions.
Costs
• Incur unnecessary
costs
• Forgo opportunities
to capture synergies
Strategic insights
• Should we buy or sell
the restaurant business?
• Should we expand
into China?
• Are we vulnerable to
Japanese competitors?
• Should we vertically
purchases for VMRs (value managed relationships?
• How should we configure
our manufacturing plants?
6
Business Definition
Consequences of Incorrect Business Definition
integrate into growing vegetables?
Tactical insights with strategic importance
• Should we drop this
product line?
• Should we cross-train our
salesforce?
• How should we group
• Forgo opportunities to
capture synergies
• Misjudge relevant market
trends
• Overlook relevant
geographies
Competitors
• Overlook relevant
competitive threats
•Key takeaways
Agenda 3
Business Definition
What is Business Definition?
Business definition delineates the economic boundaries within which companies should compete.
• Do not transfer
experience
• Underinvest in
important R&D initiatives
Customers
• Neglect profitable
customer segments
• Over-invest in
unprofitable customers
• Miscalculate “market
•Indicates whether two business segments should be operated as
one business or as separate businesses
•Helps identify what drives superior profitability in an industry
•Key takeaways
Agenda 2
Business Definition
•The business definition concept •Applications •Business definition steps •Client examples
–Bunker Hill Door Systems –JJR Industrial Coatings