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Strategic pyramid


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Strategic pyramid
Richard M. Brandt (Iacocca Institute, USA)

Published in: Business
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Strategic pyramid

  2. 2. WHY HAVE A STRATEGIC PYRAMID  Focus all departments on most important countries and activities  Have a template which strategy and sales, and product management and R&D agree on  Do hard work up front and review each year (fight the war and stop the monthly battles)  Line up strategic objective with the position of your main competitors  Allows for proper HR emphasis, rewards and incentives  Saves $ and time
  3. 3. MOST EXPENSIVE CITIES The Cost of Doing Business ***Least Expensive International Locations***Most Expensive International Locations Location Caracas Geneva Stockholm Stavanger Hong Kong Zurich London Paris Oslo Riyadh Per Diem Total $611 $547 $528 $524 $523 $509 $508 $502 $497 $495 Location Mexico City San Jose New Delhi San Salvador Tianjin Mumbai Johannesburg Bangalore Guatemala City Cape Town Per Diem Total $252 $250 $245 $242 $242 $229 $213 $210 $209 $195
  4. 4. STRATEGIC MARKET SEGMENTATION General characteristics top priority- “growth & hold”
  5. 5. ASIA PACIFIC REGION  Indonesia  Korea  Australia  Japan  Brunei  Hong Kong  India  Malaysia  PRC  New Zealand  Sri Lanka  Singapore  Thailand  Taiwan  Philippines
  6. 6. STRATEGIC MARKET SEGMENTATION General characteristics top priority- “growth & hold”
  7. 7. EMEA REGION  Russia  France  Sweden  Germany  Italy  Belgium  Netherlands  Slovak Republic  Egypt  Spain  Poland  Saudi Arabia  Czech. Republic  Hungary  Romania  South Africa
  8. 8. General Characteristics Top Priority- “Growth & Hold”  Large Addressable Market ($500M)  Largest Revenue Opportunity (>$150M)  Highest Priority Markets Balance  Large Addressable Market ($300M)  Largest Revenue Opportunity (>$70M)  High Priority Markets Income  Profitability is Key  Addressable Market Potentially  Smaller Revenue Opportunity ($40M) Opportunistic  Relatively Small Addressable Market  Smaller Revenue Opportunity ($1-40M)  Low priority markets due to size of opportunity or risk STRATEGIC MARKET SEGMENTATION “Establish” India, Japan, PRC “Hold/Growth” Taiwan “Establish” Indonesia, Malaysia, Philippines, Thailand “Hold/Growth” Korea Australia, Brunei, Sri Lanka Hong Kong, New Zealand, Singapore
  9. 9. STRATEGIC MARKET SEGMENTATION “Establish” France, Germany “Hold/Growth” Saudi Arabia, Netherlands, Poland “Establish” South Africa, Spain, Italy “Hold/Growth” Russia, Egypt Romania, Hungary, Slovak Republic Sweden, Czech Republic, Belgium