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? Credit problem ? Basic fabrics “Opportunistic” Strategy ? Specialty products ? Narrow customer base Niche Strategy (specialized product to narrow customer base) ? Sell to manufacturers before fabric purchase ? Established credit ? Broad customer base ? Basic fabrics LowCost Strategy ? Sell to manufacturers before fabric purchase ? Established credit ? Focused customer base ? Novel fabrics (“fashion forward”) Differentiation Strategy (specialized product to broad customer base) STEP DATA REQUIRED SOURCE(S) 1. Identify segmentation variables and segment the market a) Survey Stage: Conduct interviews/focus groups with consumers to gain insight into motivations, attitudes, and behavior b) Analysis Stage: Apply factor analysis to data to remove highly correlated variables。 identify gaps ? Define expertise, info required to make decision, anizational requirements ? Define evolving nature of anization and information flows ? Key decisions ? Key individuals involved in decisionmaking process ? Information flows ? Management interviews ? Organization charts ? Memos/documents on management processes ? System flow charts Data/Info Flows Org Charts ? a a “” ” ? a : a “” “” ? “” ? ? () ? ? ? ? ? ? M. , “ ”, 3 . ’s , , , 1 2 3 4 . a , : : : : ? : ? : ? : . , “ : ” a , . , a ’s ’ . : A v e r a g e S p e e d o f A n s w e r( s e c o n d s )C a l l A b a n d o n( % )C a l l s H a n d l e d I n O n e S e s s i o n( % )A v e r a g e C a l l s / R e p / D a yC o m p a n yI C S AB e n c h m a r k i n gS t u d yGEA n s w e rC e n t e rT A R P800 N u m b e r S u r v e y( m e d i a n )34 65 10053 76G e o r g i aP o w e rC o m p a n y( A d v e r t i s e rS u r v e y )I C S AB e n c h m a r k i n gS t u d y w i t h8 9 % o fr e s p o n d e n t sGEA n s w e rC e n t e rG T EA c m eP o w e rC o m p a n ye s t i m a t eI C S AB e n c h m a r k i n gS t u d yB o s t o nE d i s o n T A R P800N u m b e rS u r v e y( m e d i a n )G e o r g i aP o w e rD e l lC o m p u t e r 9 0 %w i t h i n C o m p a n y95%g r e a t e rt h a nI C S AB e n c h m a r k i n gS t u d yA p e xP o w e rL i g h t80%w i t h i nT A R P800 N u m b e r S u r v e y( m e d i a n )A c m eP o w e r2 0 % 3%30 1006 0 175 0 % 100%62 5 0 8570 9819 3 . 75 . 06 . 07 . 01720284560Months Home Goods Perishables Apparel Average = = Maximum = Average or Most Common = Minimum 0 2 4 6 8 10 12 14 16 18 20 A B C D E F G I J K L M N NEW PRODUCT DEVELOPMENT CYCLE TIME Best Practices ? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ a , a ’s . ’s . 。 1999 1 169。 1998, . : : 6603 1 2 3 4 5 6 7 8 9 . 10 11 12 13 14 15 16 17 18 19 20 21 22 23 S 24 25 26 27 28 29 a a . . CLIENT EXAMPLE: HYPOTHESIS/ANALYTICAL PLAN Hypothesis Analysis Info. Required Info. Source End Products Overall Hypothesis Organizational philosophy needs to be modified Supporting Hypothesis Existing anization does not adequately support the business strategy ? Define business system, operating environment ? Define CSFs, anizational requirements along business system ? Define how existing anization supports business system, CSFs ? Key activities, processes by LOB ? CSFs along business system by LOB ? Existing anizational elements impacting business system ? Management interviews ? Secondary research ? HR documents Business System Diagrams Activity CSF ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ ~~~~ Even after adjusting for asset writeup, financial performance has not met corporate expectations or petitive standards due to an inappropriate anization (and cost) structure ? Financial performance vs. petitors, budget/plans ? Overview of cost structure (., fixed vs. variable costs) ? ROA, NI adjusted for asset writeups ? Historic and projected financial data ? Asset writeup information ? Summary cost, volume info for production units ? Annual reports, 10Ks, 10Qs, etc. ? Company financial reports ? Financial department interviews Financial Metrics The increasing plexity of business and the evolving importance of, and coordination required between specialized expertise requires changes in the decisionmaking process and information flows ? Define actual vs. perceived vs. “real” anization chart, decisionmaking process/responsibilities。 . ? ’s , , ? ? ( ’s ? ) ? , 。 apply cluster analysis to create a number of maximally different segments 2. Form segments by looking at consumer character