Profitability growth/sales growth New market/geography/change price/process

INDUSTRY COMPANY FINANCIAL REVENUE, MKS, SALES BOOST FACTORS/RISKS/PROS/CONS

overall What is KSF? IMPACT Criteria to purchase/adopt/loyalty
Growth Product: Revenues: Revenue growth: Cost reduction: Financial impact Strategic/ business model Risks
• Growth rate • What offering • Revenues
• Industry trends • Product image • Price Product • Labor Estimated profitability: Location Financial:
& dynamics • Substitution • Volume • Add features, extras • Working hours • Forecast Revenues • Location access opportunity • Lack of funding
• Growing vs • Differentiation factors • Product innovation • Negotiate with • Forecast Costs • Larger geography • Exaggerated revenues
mature market • Mass vs niche product Costs: • Increase product mix suppliers • Forecast MKS • Talent pool • Underst. costs: rent, storage
• Life cycle • Commodity vs premium • Forecast costs • Cut or change • Predicted cash flow • Increased geographical footprint • Higher fees
• Changes in • Product cycle • Variable costs Marketing suppliers • Product cannibalization
customers • Product testing • Fixed costs • Increase marketing • Purchase in bulk Investment: Product • High distribution discount
behaviour • Higher ads with discount • Capex • Quality
Investment: • Change message • Identify waste • Opex • Useful life Market-specific:
Competition Customers: • Expected • Bundles, promotions • Inventory • Investment required • Add-ons, extras • Low adoption
• Competitive • Current customers investment • Merchandise • Outsource • Investment criteria • Reliability, security& safety • Substitutes availability
advantage • Target segment • CAPEX • Loyalty schemes • Relocation • Sensitivity & scenario analysis • New comers, lot players
• Resource • Price elasticity • ROI • Import cheaper • Target ROI Distribution channels • Changing customer preferences
availability • Customer loyalty • Payback Value proposition • New technology • Payback • Distribution channels • Competitive aggressive response
• Market share • Brand perception • Strenghten customer investment • Improve logistic • Negative brand image
• Large players • Customer retention Other: value proposition Costs: • Storage • Commodity = hard to win
vs fragmented • Forecast market • Increase customer • CoO • High industry pressure
• Brand/image share experience & satisfaction • Fuel price Marketing
• Increase quality • Mantainance • Promotions, bundles Operational
Consumer Placement & distribution • Identify pain points • Insurance • Increase loyalty • Operation complexity
• Target channels: • Identify strenghts • Cost optimization • Long implementation
customers • Salesforce: incentive & Customers • Logistic risk
• Target segment bonuses Distribution channels Revenues: • Target customers • Lack synergies
• Changing • Current channels • Increase distribution • Unclear revenues • Switching cost: high or low • Lack production capacity
customer • OFFLINE: shops, mass channels efficiency • Processes disruption
behaviour market retailers, own • New distribution channels Opex: Value proposition • Cannibalization
shops, vending • Renegotiation • Rent, utilities, insurance, labor, • Brand awareness • Pain points
Product/service machines, airports, transportation • Improve customer experience • Lack expertise
• Differentiation shopping malls Customers • Better customer experience • Lack local talent pool
• Substitutes • ONLINE: website, • Increase customers e.g. cross-service, less human
availability • New trainings
marketplace, partners labor, more sales, less admin. Capacity & production
• Long supply negotiations
online, subscription Price Time, waste, T&Cs, • Increase capacity production
Entry/exit • Lack storage
purchases • Change pricing • Speed, faster process
barriers • Lack efficiency of distribution
• WTP • Learning curve
• Capex- Brand: channels
• (in)elastic
intensive • Perception & image • Long regulation approval
Wrong pricing: high, Other
• High capital • Limited network effect
uncompetitive discount • Revenue synergies
• High R&D Price: policies, high CoO • Supply chain constraints
• Cost synergies
• Reputation- • WTP • High waste
• Disaster protection
driven market • Current price Other • Longer R&D
• Specific new technology
• Big players • Price elasticity • Joint Venture • Loss economy of scale
• Less waste
• Regulations • Discounts/offers • Acquisition of expert or • Potential (design) flaws
e.g. easier to book/buy
• Suppliers • 1-time vs subscription competitor • Lack of assistance
• P inclusion • Geography expansion • Lack usability
• Cross-selling (extras,
Marketing food add) e.g. side effects, FDA approval,
• Strategy/message • Up-selling (upgrades) not user-friendly
• Salesforce • Diversification
• Discounts
• Promotions & bundles
Increase marketing Increase value proposition Increase distr efficiency Inadequate pricing Reasons for slow growth Improve production capacity
• More aggressive campaign • Customer experience • Analyze salesforce • High CoO (fuel, extras) Demand side:
• Loyalty cards & schemes • Improve staff • Increase commissions, incentive, • No discounts or promotions • Mature market 1. Equipment effectiveness: faster
• Co-marketing activities • Expand size • Bonus for salesforce • No flexibility with payments • Negative image & reputation maintenance, controls, root causes,
• Organize events & convention • More working hours • Trainings, network salesforce • Customers: price sensitivity econ of scale, new machinery;
• Showroom • Better marketing campaign • Expand branded shops Optimize pricing • No “normal” product
• Share customer feedback • Identify pain points • Develop partnerships • Flexible payments • Seasonality, changes preferences 2. Productivity: training, hiring
• CoO: repair, upgrade, training • Disruption in competition standards, product KPIs, incentive,
• Better: features, range, quality • Improve online conversion rate
Poor marketing: • Offer free trials Supply: more staff & more shifts, outsource;
• Better after sales service • Expan regions/geography focus
• Low budget, brand awareness • 24/7 assistance • Bundles, promotions • Lack R&D costly & innovation
3. Quality: less defect products
• Unclear message, call-to-action • More flexibility with customers e.g. direct customer, retailer, • Subscription models • New regulations
e.g. emails, website, ads, targeted supermarkets, marketplace, wholesa • Surveys • Low actractiveness
digital, events, loyalty, SEO, social • Cheaper subsitutes available

Key purchase factors Vertical integration advantages Value chain: Grow business: Revenue synergies: Cost synergies:
• Good perception: “heard”, • More quality control • R&D 1. Core business • Cross sell • Shared software
trendind, social media, • More flexibility • Raw materials: cost, relationship • Current segments = increase • Bundling • Marketing
reccomendations, ranking; • Better quality with supplier, delivery marketing, quality • “All-in-1” value proposition • Overhead
• Appealing pricing: 1-time vs • Expertise to innovate • Production • Focus on fastest segment • Distribution channels • Distribution channels
subscription, extras; • Shorter time to market • Distribution 2. Outside business • Use brand awareness
• Easy distribution: easy find/buy; • Less supply disruption • Marketing & sales • New prod = same customers • Co-marketing campaigns
• Attractive value proposition: • Cost synergies • New prod = new customers à
synergies, high value, quality; • Streamlines process diversification
Extend ex. facility New facility Acquisition Outsource Joint venture Acquisition:
+ existing distrib channels + access new regions/locations + control + low cost-product + lower cost-product 1. Standalone value
+ known customer targets + more capacity + expertise/knowledge + low labour cost + access new markets & locations 2. Synergies (Rs & Cs)
+ talent pool in place + new talent pool + high quality + save time & resources + more capacity 3. Capabilities
-------------------------------------------- + new management + fast growth -------------------------------------------- + share costs & risks
- expensive -------------------------------------------- + vertical integration - lower quality + no culture clash Franchise:
- disruption process - new distribution channels + boost: more strength & buy power - international tensions/sanctions + access knowledge
- location has effects on image -------------------------------------------- - hidden charges + easy to terminate
- expensive - premium price - lack of control --------------------------------------------
- hard quality check - culture clash - no local talent - low control
- longer process than existing facility - brand image - communication issues
- lack of local talent, expertise - communication issues - lack of trust
Clarifying questions
• Product (mass vs premium), customer targets (B2B, B2C), geography, revenues, industry trends, financial goals, time goals, business model

Industry comments • High CAPEX: energy + transportation + semiconductors + automobile + healthcare

• Mature market à small growth (single digit %) • Low CAPEX: food +
• New market, hot à good opportunity à fast growth à requires high marketing • Mature: food + agriculture + mining + toys +
• Commodity product à price depends on global markets (= price pressure) à low margins à design can be key • Growing: online + technology +
• Premium product à key: quality + distribution + loyalty à price inelastic à high margins • Commoditization: toys, food, PCs, keyboards, clothes, healthcare,
• Large client à resources & cap + high R&D & marketing budget + brand awareness + potential explore new geogr. • Seasonal: hotels, ski equipment, landscaping, restaurants,
• CAPEX/high-heavy market à low profits à economies of scale is important à volume driven Trends
• High volatility à seasonal, ST contracts; High switching costs à customers retention • Digital marketing, AI, VR à new experiences + story telling + better in-store experience
• COVID à slow economic growth, recession, supply chain shortages, at-home, no activities, more pets • Digital marketing, online sell & channels, targeted ads + streaming + subscription plans
• New trends in sust + environmental reg à issues & increase cost (look at increase in population, demand, issues) • Cloud: more data, quantity, safety, reliability, disaster prevention, scalability, transferability, expandable
• B2B à necessary to build strong supplier/customers relationship & LT contracts • Sustainability, millennials, online

Next steps
• Risk mitigation plan
• In depth analysis of distribution channels/competition/benchmark analysis/sales growth opportunities/cost reduction
• Consider expansion in X market and other countries; Assess the atractiveness of option X