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pany? How experienced is the management team? 8 CU7112497ECA BOS Copyright169。 1998 Bain Company, Inc. 3 C’s Capabilities CapabilitiesRelated Bain Tools Strategic Questions Answered 2. Make/Buy Analysis 2. What should the pany make itself versus buy from another pany? 1. Core Competencies 1. What special skills or technologies does the pany have that create differentiable customer value? How can a pany leverage its core petencies? What investments in technology and people will help build unique capabilities? Costs Customers Competitors Capabilities 3. What anizational structure will enable the pany to implement its strategy effectively? 3. Organizational Structure 9 CU7112497ECA BOS Copyright169。 1998 Bain Company, Inc. 3 C’s Agenda ?The 3C’s framework ?Tools and strategic questions answered ?Takeaway slides 10 CU7112497ECA BOS Copyright169。 1998 Bain Company, Inc. 3 C39。s Takeaway Slides Costs RCP Cost Experience Curve Value Chain Analysis BDP Quantification A B C C li ent c ur r ent C om pe tit or A C om pe tit or B C li ent f ul lpo te ntia l$95$10 0 $10 0$80$0$20$40$60$80$10 0Cost/UnitProcure materials Make Sell Support Avg. rev/salesperson: BDP rev/person: Rev impact of achieving BDP: $ $ $ $ $ $ $ $ $ Region ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Fixed/Variable Costs Su p e r vi s o r yla b o rR e n tV a r ia b leF ix e dH o u r ly l a b o rR a w m a t e r ia lsF ix e d c o st s T o ta l c o st s V a r ia b le c o st s0%2 0 %4 0 %6 0 %8 0 %1 0 0 %PercentDirect/Indirect Costs P a ck a g in gH o u r ly l a b o rIn d ir e ctD ir e ctAd ve r ti si n gO ve r h e a dD ir e ct c o st s T o ta l c o st s I n d ir e ct c o st s0%2 0 %4 0 %6 0 %8 0 %1 0 0 %PercentPLP S hoe s S oc k s Be lts S hi rts( 10 %)( 5% )0%5%10%15%20%ROS (%)Revenue (% of total) Unit Cost (log) Accumulated Experience (log) R2 = Bain Slope = 70% Client A B Client $ $ $ $ $ $ 11 CU7112497ECA BOS Copyright169。 1998 Bain Company, Inc. 3 C39。s Takeaway Slides Customers (1) Attractiveness A B C Target segment Segment Financial Attractiveness Ease of Implementation Hi Lo Low price High quality Fast delivery A B C D Segment Needs Segment Segment Share Total market = $ Competitors (% of Total Sales) Client A B C D0%20%40%60%80%10 0%Se gm en t (% of T otal S al es )$ $ $ $ $ Satisfaction Over Time Percent of Repli