1 The Generic Strategies

To quote Porter, "firms pursuing the same strategy directed to the same target market constitute a strategic group". Once the firm has decided on its strategic positioning within its strategic groups relative to its competitors' in the industry, as either a cost leader, quality leader, or niche leader, it must develop its own unique marketing, technology, and sourcing strategies and be able to execute them profitably (generating both high market share and high percentage margin)

2 The Business Review

Because we've conducted hundreds of reviews throughout our 30+

year careers, we generally have a good snapshot by the 3rd week.

However, the subsequent due diligence phase can take a lot longer:

A Qualitative Review which looks at both product development

and omnichannel development. This is where today's Web

analytics tools can provide real-time insights on a customer's buying behavior along his journey across the omnichannel's network of connected physical and online stores

A Quantitative Review to determine market demand and the

targeted firm's competitive market share

A Financial Review to ensure that the strategy will turn a profit for the targeted firm, maximizing its revenue (marketing), minimizing both its costs (operations) and its financing needs (finance) in its business (production)

A Business Model Review We look for business models able to achieve both high market share and high profit margin very early on for the targeted firm

A Risk Model Review We ensure that all 5 sources of risk, namely firm, competitive, industry, macroeconomic, and cybersecurity risks, have been integrated into the target firm's investment strategy (return on capital) and financing strategy (cost of capital). We look at

          Analysis the handful of marketing, operating and financial

          assumptions underlying the risk-return analysis

          Decision-making the firm's (re)organizational agility, which

          enables it to tactically and strategically change course when

          the assumptions are no longer valid, as so often happens

          Execution the way the firm actually uses both natural and

          financial hedges to take long or short positions to offset its long

          or short risk exposures (the net position should ideally be nil)

A Business Function Review is finally conducted around the 9 generic business functions: Marketing, Sales/Production/Distribution/Payment/

Service (forming the service cycle), Operations, Finance, and Control:

Marketing Strategy

The Business Review

Customer

Analytics

Customer Profitabilty

Customer Acquisition

Customer Service

Marketing

Brand and Innovation Management

OPERATIONS

People

Control

People

Marketing Strategy

Competitive Strategy

3 The Operational Review (see Apple Case Study)

Customer Retention

The Market

The Industry

Finance

Money

Finance

Money

Financial Strategy

How We Do It

Execution

Customer

Delivery

The Customer

Sales

Production

Distribution

Payment

Service

Competitive Strategy