Analysis 21: The Cause of Volatility
| HOW TO INTERPRET THE ANALYSIS: This exhibit indicates that 72% of the total Volatility in the industry was the result of the "failure" of incumbent suppliers to offer something that more than half of the suppliers in the industry offer. These failures caused customers to open their relationships to other suppliers. On the other hand, 28% of Volatility in the industry was due to a "win." Here, suppliers offered customers something that less than half of the industry's suppliers could offer to the customers.
PURPOSE: This analysis quantifies the reasons and shares of total volatile volume moving due to incumbent supplier failure of a customer relationship as well as due to competitive wins in the market place.
APPROACH: This Analysis draws on the resuls of Analyses 2 and 66. The Win vs. Fail Definitions (Analysis 20) breaks all the volatile volume in the market into volume that moved on a "win," where a competitor offered something that less than half of the competitors in the market would offer, and where there was a "failure," where an incumbent supplier either could not, or would not, offer a benefit that the customer viewed as available from at least half the suppliers in the marketplace.
Return to Diagnose Segments: Win vs. Failure
|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.