戰(zhàn)略分析工具

Profit

Pools

and

CoreCompetenceDarral

G

ClarkeProfessor

of

ManagementThe

Marriott

SchoolBrigham

Young

University2023-07-211THE

PC

INDUSTRY’S

PROFIT

POOLValue

chain

focusAxesVertical—operating

marginHorizontal—share

of

industry

data40%30201000100%microprocessorsother

componentspersonal

computersshare

of

industry

revenuesoftwareperipheralsservicesThe

valuechainfor

the

PC

industryincludessix

key

activities;

theprofitability

of

the

activities

varieswidely.

Manufacturers

compete

inthe

largest

but

least-profitablesegment

of

the

chain.2023-07-21Darral

G.

Clarke

for

BM

4993The

Profit

Pool

Lens2023-07-21Darral

G.

Clarke

for

BM

4994

The

profit

pool

is

the

total

profit

earned

in

anindustry

at

all

points

along

the

industry’s

valuechain

Segment

profitability

may

vary

by

customer

group,product

category,

geographic

market,

or

distributionchannel

Profit

concentration

may

be

very

different

thanrevenue

concentration

Shape

of

the

profit

pool

reflects

the

competitivedynamics

of

a

businessInteractions

of

companies

and

customersCompetitive

strategies

of

competitorsProduct

pools

are

not

stagnantTHE

U.S.

AUTO

INDUSTRY’S

PROFIT

POOL100%source:

Harvard

Business

Review,

May-June

1998auto

rental25%rating

margi1n510500share

of

industry

revenueauto

manufacturingnew

cardealersused

car

dealersauto

insuranceaftermarket

parts20auto

loansleasingwarrantygasolineservicerepairThe

automotive

industry

encompassesmany

value-chain

activities.

The

way

thatprofits

and

revenues

are

distributedamong

these

activities

varies

greatly.

Themost

profitable

areas

of

the

car

businessare

not

theones

that

generatethe

biggestrevenues.2023-07-21Darral

G.

Clarke

for

BM

4995Profit

Pools:

CompanyExamples2023-07-21Darral

G.

Clarke

for

BM

4996Companies

AutomakersU-HaulElevators(OTIS)HarleyDavidsonPolaroidCore

Business

Auto

manufacturingTruck

RentalElevator

ManufacturingMotorcyclesInstant

PhotographyCamerasSources

of

Highest

ROI

Auto

leasing,

insurancePacking

materials,

storageServiceAccessories

(consumerproducts),

leasing,

service,restaurantsFilmManagerial

Implications2023-07-21Darral

G.

Clarke

for

BM

4997

Focus

on

growth

and

market

share

can

lead

a

company

tofocus

on

unprofitable

segments

of

an

industry

Today’s

deep

revenue

revenue

pool

may

be

tomorrow’s

dryhole.The

goal

should

be

to

focus

on

profitable

opportunities

Industry

should

be

considered

more

broadly

thantraditionaldefinitionAutomobile

industry

includesComponent

manufacture

and

supplyNew

car

assembly

and

deliveryNew

car

warrantee

and

serviceNew

car

financing

and

insuranceUsed

car

sales

and

serviceTurbulent

industries2023-07-21Darral

G.

Clarke

for

BM

4998

Profit

pools

are

especially

important

anduseful

in

industries

undergoingderegulation

and/or

technological

change

Such

changes

can

open

new

profit

poolopportunities

and

drain

old

onesChoke

points

may

change

or

be

eliminated

Opportunities

for

either

forward

orvertical

integration

may

emerge

Current

vertical

integration

may

bedisintermediatedCreating

and

managing

aprofit

pool2023-07-21Darral

G.

Clarke

for

BM

4999

Profit

pool

analysis

may

indicate

newopportunities

or

threatsImperatives

Be

open

to

a

new

perspective

on

your

business

andindustry

Developing

new

strategy

may

require

overturningelements

of

the

current

strategy

Be

open

to

reevaluate

therole

played

by

currentcompetitors

Be

vigilant

to

identify

possibility

that

new

entrants

mayseek

to

enter

your

industry

with

radicalstrategiesLooking

Ahead:

Profit

Poolsand

the

Five

Forces2023-07-21Darral

G.

Clarke

for

BM

49910

Profit

pools

are

computed

by

multiplying

the

sizeof

the

revenue

by

the

unit

profit

marginEssentially

an

accounting

process--

no

theory

Most

valuable

in

situations

in

which

external

conditionsare

essential

stable

and/or

unimportant(Often

dominated

by

internal

data

alone)The

five

forces

tells

us

(which

will

studynext)

the

underlying

determinants

that

determine

both

therevenue

size

and

the

unit

profit

margin

The

profit

drivers

which

allow

us

to

forecast

thedirection

of

changeMarakon

RunnersThomas

A.

StewartFortuneSept.

28,

19982023-07-2111Marakon

Associates’s

Approach

toCorporate

Strategy2023-07-21Darral

G.

Clarke

for

BM

49912Consultants

to

many

large

corporationsCocaCola,

HP,

GM,

CitiCorp,

etc.

Clients

have

returns

3.1%

higher

thanindustry

peer

group

Goal

is

to

increase

shareholder

valuethrough

analysis

of

economic

profit

Deep

drilling

in

business

data

to

measurevalue

creationProduct

segmentsCustomer

segmentsHow

Strategy

Happens2023-07-21Darral

G.

Clarke

for

BM

49913Learning

wherevalue

is

created

Waterfall

charts

by

product

and

customersegmentsEvaluating

strategyIndustry

average

profit

per

unitCompany’s

profit

vs

industry

averageManaging

valueCurrent

strategyChange

product

focusChange

customer

focusLearning

where

value

is

createdProduct

segmentsCustomer

segmentsVolume

(units)2023-07-21Darral

G.

Clarke

for

BM

49914Volume

(units)oss

($

0per

unit)Evaluating

StrategyCompany

profit

per

unitIndustry-average

profit

per

unit2023-07-21Darral

G.

Clarke

for

BM

49915Managing

for

valueCurrentstrategy2023-07-21Darral

G.

Clarke

for

BM

49916ChangeproductfocusChangeCustomerfocusValueApplication

to

our

cases2023-07-21Darral

G.

Clarke

for

BM

49917Retail

industry

(Wal*Mart)

Soft

drink

industry

(Coca-Cola

andPepsiCo)Steel

(Nucor)

and

aluminum

cans

(CC&S)Hi

tech

(Intel,

Cisco,

and

Dell)Video

games

(Nintendo)Web

businesses

(eBay

and

Yahoo!)The

Core

Competence

of

theCorporation2023-07-2118Prahalad,

C.

K.

and

GaryHamelHarvard

Business

Review,May-June

1990Core

Competence2023-07-21Darral

G.

Clarke

for

BM

49919A

Firm

is

made

up

of

resources

people,

patents,

brand

names,

plant&equipment,

processes,

etc

A

competence

is

the

ability

to

employdiverse

skills

and

resources

to

performtasks

and

activities.

A

core

competence

is

a

broadly

based

and/or

a

broadly

applied

fundamental

capability.Competence

and

Technology2023-07-21Darral

G.

Clarke

for

BM

49920

Competence

is

not

the

same

astechnologyCompetence

requirestechnologiessocial

organizationcollective

learningCore

competence

questions:2023-07-21Darral

G.

Clarke

for

BM

49921What

are

we

really

good

at?How

can

we

build

upon

it?What

do

we

need

to

be

good

at?Characteristics

of

EffectiveCompetencies2023-07-21Darral

G.

Clarke

for

BM

49922

Durability:

Technical

equipment

can

be

shortlived.

Reputationor

knowledge

may

depreciatemore

slowly.Transparency:The

more

complex

the

source

ofcompetence,

the

harder

it

is

to

imitate

it.The

availability

of

resources

toTransferability:competitors.Replicability:A

competitor’s

internal

ability

toreplicate

a

competence

using

available

resources.Choosing

Competencies2023-07-21Darral

G.

Clarke

for

BM

49923

How

central

is

this

competence

to

oursuccess

in

the

market?

How

long

could

we

preserve

ourcompetitiveness

in

this

business

withoutthis

particular

competence?

What

future

opportunities

would

beforeclosed

if

we

were

to

lose

thisparticular

competence?Core

Competence

and

CoreProducts2023-07-21Darral

G.

Clarke

for

BM

49924A

Hierarchy

of

Competencies2023-07-21Darral

G.

Clarke

for

BM

49925Building

Strategy

fromCapabilitiesStrategyCapabilitiesResources1.

Identify

resources,

appraiserelativestrengths

and

weaknesses.Leverage

use

of

resources2.

Identify

capabilities.

What

do

we

domore

effectively

than

competitors?Identify

resource

inputs

to

capabilities.3.

Appraise

rent-generating

potentialresources

andcapabilitiesin

terms

of:sustainable

advantage,

inappropriability4.

Select

strategy

that

best

exploits

thefirm’s

resources

and

capabilities

rela-tive

to

external

opportunities.5.

Identify

resourcegaps

that

need

to

befilled.Invest

in

replenishing,augmenting,

and

up-grading

the

firm’sresource

base.CompetitiveAdvantageSource:

Robert

M.

Grant,

“The

Resource-Based

Theory

of

Competitive

Advantage,”California

Management

Review,

Spring,1991,

page

151.2023-07-21Darral

G.

Clarke

for

BM

49926How

to

map

your

industry’sprofit

poolOrit

Gadiesh

and

James

L.

GilbertHarvard

Business

ReviewMay-June19982023-07-2127A

straight

forward

exercisewith

complications2023-07-21Darral

G.

Clarke

for

BM

49928Concept

is

straight

forwardDefine

value

chain

activitiesDetermine

their

size

and

profitabilityApplication

of

concept

is

complicated

Financial

data

doesn’t

correspond

to

value

chainactivitiesCompany

data

is

aggregated

across

businesses

Products,

customer

purchases,

channel

volumes

rarelymatch

up

with

boundaries

of

an

activityConsiderable

creativityis

requiredFour

step

process2023-07-21Darral

G.

Clarke

for

BM

49929Define

the

poolDetermine

the

size

of

the

poolDetermine

the

distribution

of

profitsReconcile

the

estimatesFour

step

processDefine

the

pool2023-07-21Darral

G.

Clarke

for

BM

49930Determine

thesizeof

the

poolDetermine

profitdistributionReconcile

theestimatesTask:

determine

whichvalue-chain

activityinfluence

profits

now

and

in

thefutureDevelop

a

baselineestimate

of

cumulativeprofits

generated

by

allprofit

pool

activitiesDevelop

estimate

of

theprofits

generated

byeach

activityCompare

the

outputs

ofsteps2

&

3GuidelinesTake

a

broad

view

of

thevaluechain(beyondtraditional

industrydefinition)Seek

a

rough

butaccurate

estimateShift

betweenaggregation

anddisaggregation

in

youranalysisIf

numbers

don’t

addup,Check

assumptionand

calculationsExamine

industry

fromthreeperspective:own,other

players,

customersTake

easiest

route:

gowhere

the

data

areDo

own

economics

first,then

large

pure

players,large

mixed,

smallerCollect

additional

dataDon’t

disaggregate

morethan

necessaryTake

at

least

twoviewpoints:

companylevel

and

product

levelUse

proxy

measureswhere

necessaryResolveinconsistencies—don’t

ignore

themOutputProfit

pool

listEstimate

of

total

poolprofits,

(range)Pointestimate

of

profitsfor

each

value

chainactivityFinal

estimates

ofactivity

and

total

poolprofitsWhat

is

“profit”

anyway?2023-07-21Darral

G.

Clarke

for

BM

49931

Can

be

thoughtof

in

three

ways

(all

ofwhich

may

be

relevant

for

profit

poolanalysis)Acc