WORKSHEET #1: Defining the Business
Identify the most common product in the business and describe its standard benefits. Call this the Standard Leader product.
Describe the other product Price Points in the business, with their benefit and price differences from the Standard Leader product.
Describe the assets or infrastructure the business needs to produce the Standard Leader product and the other Price Points in the business.
Note any product Price Point that uses a set of assets notably different from the assets used to produce the other product Price Points. This product may not be a part of the business.
List any competitor organization (that is, company, subsidiary or division) that does not realize more than 50% of its revenue in the business you have defined. This competitor might not be in your business.
Describe how the various customer types in the business use the product.
Note any customer type that uses the product for different applications or for different reasons than the other customer types. This customer type may be a part of a different business.
List all of the products that you sell in the business. Classify each as a Standard Leader, Performance Leader, Price Leader or Next Leader product in the industry. Then identify the competition for each product and the customer types in the business who will buy the product.
If you can not complete Step #9 easily, repeat Steps #1 through #9 by eliminating products, competitors or customers until you can define easily your products within the business.
Once you have developed tactics for the business that emerges from Step 9, you may then broaden your business definition and tactics to account for the pressure from the products, competitors or customer types you eliminated in the previous steps. This may be a very important part of the work you must do.