You know how to market your products and services. But do you know how to beat your competitors without going into the proce war or compromising quality? Growing your business is a challenging task. This presentation shows how growing companies are accomplishing it and how you can adopt these tactics for your business growth.

1. Growth Strategies – Beat
the Unbeatable
―There, there it is again—the invisible hand
of the marketplace giving us the finger.‖
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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2. ITS NOT STRATEGY THAT MATTERS – IT’S EXECUTION THAT COUNTS
 cpSphere

Delivering Next Generation of Solutions
17215 Studebaker Rd. Suite 390
Cerritos, CA 90703
1.562.860.8637
1.562.860.8611
growth@cpSphere.com
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
www.cpSphere.com
info@cpsphere.com
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3. Business is somewhat like
Driving…
Open Roads, Fast Traffic
does it matter if you are driving a new fast or an
old modest car?
Just like driving, best business strategy is to be in an
industry that is growing fast
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

4. Unfortunately most of us drive
with the traffic …
Congested Roads, Slow Traffic
does it matter if you are driving a new fast or an
old modest car
Just like congested roads, we are in slow growing
industries with many competitors.
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

5. In congested roads, how will you
reach your destination quickly?
• Be an aggressive driver and maneuver through the traffic
• Drive in the car pool
• Drive on the shoulder
• Drive in an ambulance or a police car
• Use a different route
OR
• Use helicopter
For our businesses we also need an helicopter strategy
that make our competition irrelevant.
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

6. The best business strategy is to be in
a fast growing industry!
Just like driving against the traffic.
Unfortunately, most of us are driving our business with
the traffic. To beat the traffic and grow our businesses
we need a ―Helicopter Strategy‖
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

7. What is your understanding of the growth strategy?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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www.cpSphere.com

8. We believe Growth Strategies is about:
• Increase Sales or Revenue
• Capture Market share
• Beat the competition
• Exploit the existing demand
Find the new Pot of Gold!
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

9. Size of the market pie is fixed
We have to snatch competitor‘s share to increase our market?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

10. How to capture the market share?
or
Differentiation
Low Price
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

11. Low Cost Strategy
There could be only one price leader !
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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www.cpSphere.com

12. Low Cost Strategy
You might be able to capture the market share but it will
erode your profit margins
Only way to make money
with the Low Cost Strategy is by doing volume!
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

13. Differentiation Strategy
Differentiation means higher cost!
1.562.860.8637
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14. Differentiation Strategy
and/or
Customers Products
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

15. Differentiation Strategy – Customer
• Original Market
• By Region
• By Ethnicity
My Region
The World
Spanish
Female
20 - 35
• By Gender
California
Speaking
MARKET
• By Age
• Etc. etc.
Higher the segmentation, smaller the market size
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

16. Differentiation Strategy – Product
• Quality
In today‗s world, there is no way to
• Features
stop imitators.
• Technology
Does your product innovation create buyer value?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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www.cpSphere.com

17. Both Low Cost and Differentiation Strategies have their
pro and cons but they don‘t completely fit the bill of the
growth strategy because they are about war.
―The real purpose of any growth
strategy should be to create an
uncontested market place and
growth opportunities.”
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
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18. Where each strategy fits . . .
Low Price OR
Differentiation Strategy
Low Price Strategy
Differentiation AND
Low Price Strategy
Differentiation Strategy
Introduction Growth Maturity Decline
Product Life Cycle
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

19. We Believe:
―Any business with less than
1%of the market share is in
Introduction state of life-cycle.”
The best growth strategy for such businesses is
Differentiation & Low cost
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

20. Pursuing Differentiation & Low Cost Strategy
Reduce Cost
Cost
• Production
• Material
• Marketing
• Layoffs, etc.
Differentiate by
• Introducing new Product Features
• Customer Service, etc.
Product Features
Product Innovation is offsetting Cost Reduction
Do you really know where to cut cost and where to improve buyer value?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

21. Differentiation & Low Cost Strategy is about
Value Innovation
Cost
Strategically reduce cost that
results in more value for
customers
This is the corner stone of
―Helicopter Strategy‖
Buyer Value
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

22. How ?
• Conduct a detailed marketing research, highlighting
• Industry Conditions
• Competitive Situations
• Benchmark your operations
• Identify New Market Segments
• Define Detailed Budgets
Focus on the big picture, Not Numbers. . .
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

23. Strategy Canvas – A Diagnostic and
Communication Tool
How much industry invests in
Industry
High
Medium
Strategy Canvas is a structured way to define your
Low
Value Proposition
Price Factor 1 Factor 2 Factor 3 Factor 4 Factor 5
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

24. Strategy Canvas – Grocery Stores
How much industry invests in
High
Medium
Low
Industry
Sales &
Price National Choice of Store Friendly Advertisement Proximity of
Coupons
Brands Package Size Space Staff Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

25. Strategy Canvas – What it Shows
Company Caught In Fierce Competition
How much industry invests in
High
Medium
Industry
Value curve converges with competitor.
Low
Company‘s strategy is to outdo the You
competitors
Sales &
Price National Choice of Store Friendly Advertisement Proximity of
Coupons
Brands Package Size Space Staff Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

26. Strategy Canvas – What it Shows
Over Delivering Without Payback
How much industry invests in
High
Medium
You
Industry
Delivering high level across all factors. Do
Low
you have highest market share? If not,
profitability will be extremely low
Sales &
Price National Choice of Store Friendly Advertisement Proximity of
Coupons
Brands Package Size Space Staff Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

27. Strategy Canvas – What it Shows
Incoherent Strategy
How much industry invests in
High
Medium
There is no strategy, things are done on
ad-hoc basis which individually make
Industry
sense and keep everyone busy, but do
Low
not help company to standout against You
competitors
Sales &
Price National Choice of Store Friendly Advertisement Proximity of
Coupons
Brands Package Size Space Staff Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

28. Strategy Canvas – What it Shows
Strategic Contradiction
How much industry invests in
High
Medium
Industry
Company is asking high price and offer
Low
bigger area, but offer few national You
brands, and low package sizes
Sales &
Price National Choice of Store Friendly Advertisement Proximity of
Coupons
Brands Package Size Space Staff Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

29. How the Strategy Canvas Looks
for a Company that is pursuing
Differentiation and Low Cost
Strategy ?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

30. Strategy Canvas – Trader‘s Joe
How much industry invests in
High
Medium
Low
Industry
Trader Joe‘s
Price National Choice of Store Sales & Advertisement
Adventure
Fun/
Proximity of
Int. Food
Exclusive
Staff
Friendly
Brands Package Size Space Coupons
Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

31. Trader Joe‘s Strategy Canvas
• Focus
– Friendly Staff
– Exclusive International Food
– Fun place to shop
• Divergence
– Value Curve diverge from
industry Standards
• Compelling Tag Line
– Fun Place to get Exotic Food!
This curve clearly shows
where to cut cost that will deliver higher value for customers
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

32. We know how to create
Strategy Canvas.
But
How to define a New Value
Curve?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

33. Four Action Framework
Answer Four Simple Questions
1 Identify factors that you can eliminate
2 Identify factors that you can reduce, well below the
industry standard
Strategically Reduce Cost
3 Identify factors that you can increase well above
industry standard
4 Identify new factors that do not exist in industry
Strategically Invest in
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

34. Strategy Canvas – Trader‘s Joe
Invest
How much industry invests in
High
Medium
Cut Cost
Low
Industry
Trader Joe‘s
Price National Choice of Store Sales & Advertisement
Adventure
Fun/
Proximity of
Int. Food
Exclusive
Staff
Friendly
Brands Package Size Space Coupons
Stores
Factors the industry competes on
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

35. Example:
Our Client – An Interior Design Firm
• Industry Annual Revenue: $7.0b • Gross Profit Margin is 35 – 40%
• 11,000+ Interior Design firms, major • Account Receivables are about 15% of
Companies are units of big architectural gross assets
firms • Collection Period is 15 – 20 days
• Industry is extremely fragmented. Big • Inventory is 5 – 10% of gross assets, and
50 companies account for only 10% of • Inventory turn is about 10 times a year
the revenue.
• Product Sales contribute to 60% of
Revenue, Design Fee 35% and Sub-
contracting 5%
Industry Landscape: Extremely Competitive and Fragmented
Market with low barriers to entry
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

36. Strategy Canvas – Interior Design Firm
High
High-end Industry
Medium
Low-end Industry
Low
Design Ideas
Price
Showroom
Workroom
Portfolio
Design
Appeal
Emotional
Delivery
On Time
Workman ship
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

37. Traditional Approach
• Segment Market
Let‘s define the market segment e.g. Home owners, Builders, Other
Architect firms
• Cost-Payback tradeoff
Since we have limited resources, let‘s see where we can get best bank for
the buck
• Customize Offering to selected Market
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

38. Strategy Canvas – Interior Design Firm
High
Medium
Our Client
Low
High-end Industry
Low-end Industry
Design Ideas
Price
Portfolio
Design
Appeal
Emotional
Delivery
On Time
Brand
Media
Workman ship
Workroom
Showroom
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

39. Recommended Growth Strategy
• Focus
– Clear focus to create a
nationwide brand that
signifies their Style
• Divergence
• Compelling Tagline
– Leading Brand for
celebrities that reach
mass audience through
retailers
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

40. Value Curve Validation
• The litmus test i.e.
– Focus
– Divergence, and
– Compelling Tagline
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

41. What to Reduce, what to Add
Think About:
• Non-Customers, and
• Alternatives
Reconstruct Industry Boundaries
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

42. Three Tier of Non-Customers
Tier 1: ―Soon to be‖ non-customers
They are on the edge of market,
waiting to jump ship
e.g. Individual Home Owners
Tier 2: ―Refusing‖ non-customers
Market
They have consciously chosen
Market
against your market
Market e.g. corporate housing and hospitality industry
Customers
Tier 3: ―Unexplored‖ non-customers
who are in the market distant
from yours
e.g. Retail Stores
What are the common needs among largest cross-section of customers
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

43. How to Fulfill the needs of Non-Customers
Look Across
• Alternative Industries
• Strategic Group Within Industries
• Chain of Buyers
• Complementary Service Offering
• Functional and/or Emotional Appeal
• Time
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

44. Next Step
Identify Strategic Pricing Align Adoption
Initiative Operations
• Set the price which • Create a consensus
is easily accessible • Address adoption
• Does your product • Set Target Profit
to mass of buyers hurdles in
offer exceptional • Come up with
• Use Pricing actualizing the
Buyer utility? Target Cost
Corridor Tool strategy
• Use Buyer Utility • Streamline Cost
• Balance Scorecard
Map Innovation
Measuring Business Success
Operation Excellence
November 1st , 2007
October 4th , 2007
It is a given fact; whatever you
Name of the game is ―Profit‖. Learn techniques for streamlining your operations
measure, it improves. Learn how to
that results in positive bottom line for your growing business.
define an operating plan for your
business and what to measure
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

45. Credits:
International Best Seller …
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ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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46. CPSPHERE – HELP YOU FOCUS & GROW
Results
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com