Analysis 1: Business Definition
| HOW TO INTERPRET THE ANALYSIS: In Quick Service Restaurant Businesses, the products, competition and the customer types vary. The products offered range from hamburgers to Mexican food to pizza. While most of the assets and infrastructures are similar, each product uses some assets that differ from the others. As the products change, so do competitors, from suppliers like McDonald's in hamburgers, to Taco Bell in Mexican, to Pizza Hut in pizza. The customer types are consumers who use these products for differing applications by using the different products in different day-parts. Each of the product categories — hamburgers, Mexican and pizza — are different businesses.
In Fiberglass Insulation Businesses, the main product, R-19, and the competition remain the same. The customer types, however, vary from retailers to residential contractors to commercial contractors, each of which uses different criteria to make its buying decision. In addition, the competitors, while remaining the same, vary in strength in each market. As a result, there are three separate businesses: one for retailers, one for residential contractors and one for commercial contractors.
PURPOSE: This analysis defines the subject market for the development of a business unit strategy.
APPROACH: This analysis divides all the products of the company into their separate businesses. These businesses are then the subject of the development of individual tactical and strategic plans. The company conducts this analysis by listing all of its product families. Under each product family, it lists the competitors the product family faces as well as the customer types who buy the product family. If necessary, the company may further subdivide product families in order to have coherent definitions of competitors and customer types in the marketplace under each product grouping.
In general, if either the competitor group or the customer types change from one product family to another, the business itself changes.
Return to Diagnose Segments: Introduction
|For a greater overall perspective on this subject, we recommend the following related items:
Symptoms and Implications: Symptoms developing in the market that would suggest the need for this analysis.
Perspectives: Conclusions we have reached as a result of our long-term study and observations.