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Sources of
Sustainable
Competitive
Advantage
Your Company Name
Table of Contents
2
Sample Strategies
Competitive Advantage Generic Strategies
Sources of Competitive Advantage
• Strategic Location
• Expand to Global Locations
• Customer Loyalty
• Loyalty Hierarchy
• Best Customer Service
• Strong R & D
• Barriers to Entry
• First Mover Advantage
• Exclusive Strategic Partnerships
• Access to Intellectual Properties
• Innovation
• Economies of Scale
• Strategy 1- Cost Leadership
• Strategy 2- Product Differentiation
• Strategy 3- Focus Strategies
Sources of Competitive Advantage
3
Strong R&D
04
Barriers to Entry & Exit
05
First Mover Advantage
06
Exclusive Strategic Partnerships
07
Access to Intellectual Properties
08
Innovation
09
Economies of Scale
10
Strategic Location
01
Customer Loyalty
02
Best Customer Service
03
#1- Strategic
Location
4
Service Location Strategy
Maximize volume of Business & Revenue
Purchasing Power
Compatibility with Demographics
Competition
Quality of Competition
Uniqueness of Location
Physical Quality of Facilities
Operating Policies
Quality of Management
Expand to Global Locations
5
Headquarters
Branch Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
Branch
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#2- Customer Loyalty
6
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Customer
Retention
Strategies
Questionnaire/ Surveys
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audience’s attention
Regular Reviews
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audience’s attention
Overcome Buyers Remorse
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audience’s attention
Premiums & Gifts
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audience’s attention
Personal Touches
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audience’s attention
Loyalty Programs
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Loyalty Hierarchy
7
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Loyalty Hierarchy Building Block CRM Functionality
“Be in tune to my
evolving needs.”
Life Cycle
› Event triggers
› Cross – selling
› Upselling
“Be in tune with
my needs.”
Dialogue
› Call center
› Direct mail
› Field sales
› Client telling
› E-marketing
“Make it easier to satisfy my needs.” Personalization
› Segmentation
› Campaign management
› Optimization
› Predictive modeling
“Entice me.”
“Get to know me.”
Operational Loyalty
› Incentives: Point Programs, memberships, coupons and
prospecting
› Lead management, data collection and customer profiling
“Satisfy my needs.” Customer Satisfaction
› Contact center
› Management and reporting
“Promise me something that I need.” Core Value › Brand and product management
#3- Best Customer Service
8
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Bowman
Strategy
06
07
08
01
02
03
04
05
Take advantage of positive
social proofs
Remember that quality is more
important than speed
Introduce
loyalty programs
Choose the right customer
service tools
Ask your customers to
leave a feedback
Assist your customers
across various channels
Recognize
your customers
Offer personalized
customer experience
#4- Strong R & D
9
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02
04
01
03
Design
Engage in applied research
Define
Identify problem or need
Deliver
Implement to scale
Develop
Prepare for rollout
#5- Barriers to Entry
10
Limit
Pricing Tactics
When a firm sets price low
enough to discourage new
entrants into the market
Predatory
Pricing Tactics
Setting an artificially low
price for a product in order
to drive out competitors
Brand Proliferation
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Examples of “Strategic” Barriers to Entry
Structural, Strategic and Statutory
Entry Barriers
Structural barriers ('innocent'
entry barriers) – arising from
differences in production costs
01
Strategic barriers such as
different pricing policies
02
Statutory barriers – these are entry barriers given force of
law (e.g. patent protection of franchises such as the National
Lottery or television and radio broadcasting licenses)
03
Barriers to Entry
11
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Patent
A legal barrier to copying product.
Vertical Integration
If you have no access to suppliers you
cannot sell your product.
Being the ‘First Mover’
Facebook/ Google gain strong position from
being first firm to dominate a market.
Geographical Barriers
No access to suitable location
prevents new entry.
Economies of Scale
Existing firm benefits from lower
average costs due to size.
Brand Loyalty
Consumers attachment to
existing products.
Factors which make it
difficult for new firms
to enter an industry
#6- First Mover Advantage
12
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Learn from
mistakes
Set low pricing making
it difficult for new
firms to enter
Exploit Internal
Economies of Scale
Build Brand Loyalty &
Mold Consumer
Behavior
01 02 03 04
#7- Exclusive Strategic Partnerships
13
Key Metrics 20XX 20XX 20XX
Metric 1 $7m $9.3m $10.3m
Metric 2 77% 88% 93%
Metric 3 88% 89% 93%
Metric 4 2.4% 2.6% 1.7%
Baseline Goals
Initiatives for Partner Growth
All-in-one Partner Portal
01
New reseller price list with product bundles designed to help
partners drive more customer sales.
02
Discounting process for all partners
03
Joint marketing programs.
04
Partner training program with certifications and sales enablement.
05
Partner summits featuring networking and training.
06
Improved Referral Program
07
#8- Access to Intellectual Properties
14
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4 Types of intellectual Property to Protect your idea
Trade Secrets Trade Marks
Copyrights Patents
› Protects secret information
› E.g., New invention, Coke formula
› Protects brands
› E.g., Apple for cell phones
› Protects works of authorship
› E.g., books, movies, drawings
› Project functional or
ornamental features
› E.g., swipe feature or
iPhone design
#9- Innovation
15
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Radical
Innovations
Incremental
Innovations
New Product/Service
for Existing Market
New Product/Service
for New Market
Augmentation of existing
product/service line
(e.g. new menu items)
Product/Service
Improvements: changes
in features of currently
offered service
Style Changes:
modest visible
changes in
appearances
#10- Economies of Scale
16
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$
Average
Cost
Per
Item
Number of Items
What The More you make of something,
the less it costs.
Example
Manufacturing costs can fall
70% to 90% every time the
business doubles its output.
Unbeatable
Economies of Scale!
Sample Strategies
17
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Organizational Strategy Operations Strategy Example of Companies or Services
Low Price Low Cost
› U.S. first class postage
› Walmart
High Quality
High performance design and/ or high
quality processing
Consistent quality
› Sony TV
› Lexus, Cadillac,
› Coca-Cola; Kodak, Motorola
Short Time
Quick Response (rapid delivery)
On - time delivery
› McDonald’s Restaurants
› Express mail
› FedEx; One – hour photo
Newness Innovation
› 3M
› Express mail
Flexibility
Variety
Volume
› Burger King (“Have it your way”)
› McDonald (“Buses Welcome”)
Service Superior customer service
› Disneyland
› IBM
Location Convenience
› Supermarkets, Banks, ATMs
› Mall Stores
Competitive Advantage Generic Strategies
18
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Competitive Advantage
Competitive
Scope
Differentiation
Lower Cost
Narrow
Target
Broad
Target 1.Cost Leadership 2.Differentiation
3A.Cost Focus 3B.Differentiation
Focus
Strategy 1- Cost Leadership
19
Leverage the economies of scale to produce products/deliver services at the lowest
cost in the market. More appropriate for big companies.
McDonald’s main competitive advantage relies on a cost leadership
strategy. The company is able to utilize economies of scale and
produce products at a low cost and as a result, offer products at a
lower selling price than that of its competitors.
01
Walmart’s advantage relies on a cost leadership strategy. Walmart is
able to offer ‘every day low prices’ through economies of scale.
02
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Strategy 2- Product Differentiation
20
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Firm has unique resources and capabilities to satisfy customer needs in unique ways. These unique resources could include
Patents or other Intellectual Property (IP)
01
Unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess)
Talented personnel (e.g. a sports team's star players or a brokerage firm's star traders),
Innovative processes
02
03
04
This strategy helps the company set a premium price for the product or
service, earn increased revenue per unit. The consumers' loyalty towards the
brand forces them to pay the higher cost.
This strategy is more appropriate for big companies, not small
companies.
Examples- Hero, Asian Paints, HUL, Nike athletic shoes (image and brand mark), BMW Group Automobiles, Apple Computer (product's
design), Mercedes-Benz automobiles
Strategy 3- Focus Strategies
21
An appropriate strategy for small companies. In adopting a narrow focus, the company
ideally focuses on a few target markets (also called a segmentation strategy or niche
strategy). It is of 2 types-
Example- Southwest Airlines, which provides short-haul point-to-point flights in contrast to the hub-and-spoke
model of mainstream carriers, United, and American Airlines
B. Differentiation Focus
Differentiated product or service that meets the needs of the focused segment.
A. Cost Focus
Lower cost to the focused segment
Sources of Sustainable Competitive Advantage Icons Slide
22
23
Additional Slides
Agenda
24
Agenda 01
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Agenda 02
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Agenda 03
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Our Mission Vision
Values
25
Vision
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Mission
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Values
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Company Introduction
26
Professional
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audience's attention.
Creative
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Talented
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27
Our Goals
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Dashboard
28
Low
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Medium
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audience's attention.
High
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0 100
20
10
30
40
80
90
70
60
50
70%
Low
Medium
High
Roadmap Template
29
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2018
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2017
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2019
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audience's attention.
2020
Bar Chart
30
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2018
2019
2020
Product O1
Product O2 Product O1
Product O2
Pie Chart
31
Product O3
Product O1
Product O2
25%
30%
45%
Circular Diagram
32
Text Here
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02
01
03
04
Linear Diagram
33
01 02 03 04
Text Here
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Comparison
34
VS
70%
Male Users
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capture your audience's attention.
Female Users
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capture your audience's attention.
30%
Organization Chart
35
Name Here
Designation
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Designation
Name Here
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Designation
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Designation
Name Here
Timeline
36
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Start Finish
2017 2018 2019 2020
Thank You
37
Address
# street number, city, state
Contact Number
0123456789
Email Address
emailaddress123@gmail.com

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Sources of Sustainable Competitive Advantage

  • 2. Table of Contents 2 Sample Strategies Competitive Advantage Generic Strategies Sources of Competitive Advantage • Strategic Location • Expand to Global Locations • Customer Loyalty • Loyalty Hierarchy • Best Customer Service • Strong R & D • Barriers to Entry • First Mover Advantage • Exclusive Strategic Partnerships • Access to Intellectual Properties • Innovation • Economies of Scale • Strategy 1- Cost Leadership • Strategy 2- Product Differentiation • Strategy 3- Focus Strategies
  • 3. Sources of Competitive Advantage 3 Strong R&D 04 Barriers to Entry & Exit 05 First Mover Advantage 06 Exclusive Strategic Partnerships 07 Access to Intellectual Properties 08 Innovation 09 Economies of Scale 10 Strategic Location 01 Customer Loyalty 02 Best Customer Service 03
  • 4. #1- Strategic Location 4 Service Location Strategy Maximize volume of Business & Revenue Purchasing Power Compatibility with Demographics Competition Quality of Competition Uniqueness of Location Physical Quality of Facilities Operating Policies Quality of Management
  • 5. Expand to Global Locations 5 Headquarters Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 6. #2- Customer Loyalty 6 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Customer Retention Strategies Questionnaire/ Surveys This slide is 100% editable. Adapt it to needs and capture your audience’s attention Regular Reviews This slide is 100% editable. Adapt it to needs and capture your audience’s attention Overcome Buyers Remorse This slide is 100% editable. Adapt it to needs and capture your audience’s attention Premiums & Gifts This slide is 100% editable. Adapt it to needs and capture your audience’s attention Personal Touches This slide is 100% editable. Adapt it to needs and capture your audience’s attention Loyalty Programs This slide is 100% editable. Adapt it to needs and capture your audience’s attention
  • 7. Loyalty Hierarchy 7 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Loyalty Hierarchy Building Block CRM Functionality “Be in tune to my evolving needs.” Life Cycle › Event triggers › Cross – selling › Upselling “Be in tune with my needs.” Dialogue › Call center › Direct mail › Field sales › Client telling › E-marketing “Make it easier to satisfy my needs.” Personalization › Segmentation › Campaign management › Optimization › Predictive modeling “Entice me.” “Get to know me.” Operational Loyalty › Incentives: Point Programs, memberships, coupons and prospecting › Lead management, data collection and customer profiling “Satisfy my needs.” Customer Satisfaction › Contact center › Management and reporting “Promise me something that I need.” Core Value › Brand and product management
  • 8. #3- Best Customer Service 8 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Bowman Strategy 06 07 08 01 02 03 04 05 Take advantage of positive social proofs Remember that quality is more important than speed Introduce loyalty programs Choose the right customer service tools Ask your customers to leave a feedback Assist your customers across various channels Recognize your customers Offer personalized customer experience
  • 9. #4- Strong R & D 9 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 04 01 03 Design Engage in applied research Define Identify problem or need Deliver Implement to scale Develop Prepare for rollout
  • 10. #5- Barriers to Entry 10 Limit Pricing Tactics When a firm sets price low enough to discourage new entrants into the market Predatory Pricing Tactics Setting an artificially low price for a product in order to drive out competitors Brand Proliferation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Examples of “Strategic” Barriers to Entry Structural, Strategic and Statutory Entry Barriers Structural barriers ('innocent' entry barriers) – arising from differences in production costs 01 Strategic barriers such as different pricing policies 02 Statutory barriers – these are entry barriers given force of law (e.g. patent protection of franchises such as the National Lottery or television and radio broadcasting licenses) 03
  • 11. Barriers to Entry 11 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Patent A legal barrier to copying product. Vertical Integration If you have no access to suppliers you cannot sell your product. Being the ‘First Mover’ Facebook/ Google gain strong position from being first firm to dominate a market. Geographical Barriers No access to suitable location prevents new entry. Economies of Scale Existing firm benefits from lower average costs due to size. Brand Loyalty Consumers attachment to existing products. Factors which make it difficult for new firms to enter an industry
  • 12. #6- First Mover Advantage 12 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Learn from mistakes Set low pricing making it difficult for new firms to enter Exploit Internal Economies of Scale Build Brand Loyalty & Mold Consumer Behavior 01 02 03 04
  • 13. #7- Exclusive Strategic Partnerships 13 Key Metrics 20XX 20XX 20XX Metric 1 $7m $9.3m $10.3m Metric 2 77% 88% 93% Metric 3 88% 89% 93% Metric 4 2.4% 2.6% 1.7% Baseline Goals Initiatives for Partner Growth All-in-one Partner Portal 01 New reseller price list with product bundles designed to help partners drive more customer sales. 02 Discounting process for all partners 03 Joint marketing programs. 04 Partner training program with certifications and sales enablement. 05 Partner summits featuring networking and training. 06 Improved Referral Program 07
  • 14. #8- Access to Intellectual Properties 14 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 4 Types of intellectual Property to Protect your idea Trade Secrets Trade Marks Copyrights Patents › Protects secret information › E.g., New invention, Coke formula › Protects brands › E.g., Apple for cell phones › Protects works of authorship › E.g., books, movies, drawings › Project functional or ornamental features › E.g., swipe feature or iPhone design
  • 15. #9- Innovation 15 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Radical Innovations Incremental Innovations New Product/Service for Existing Market New Product/Service for New Market Augmentation of existing product/service line (e.g. new menu items) Product/Service Improvements: changes in features of currently offered service Style Changes: modest visible changes in appearances
  • 16. #10- Economies of Scale 16 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. $ Average Cost Per Item Number of Items What The More you make of something, the less it costs. Example Manufacturing costs can fall 70% to 90% every time the business doubles its output. Unbeatable Economies of Scale!
  • 17. Sample Strategies 17 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Organizational Strategy Operations Strategy Example of Companies or Services Low Price Low Cost › U.S. first class postage › Walmart High Quality High performance design and/ or high quality processing Consistent quality › Sony TV › Lexus, Cadillac, › Coca-Cola; Kodak, Motorola Short Time Quick Response (rapid delivery) On - time delivery › McDonald’s Restaurants › Express mail › FedEx; One – hour photo Newness Innovation › 3M › Express mail Flexibility Variety Volume › Burger King (“Have it your way”) › McDonald (“Buses Welcome”) Service Superior customer service › Disneyland › IBM Location Convenience › Supermarkets, Banks, ATMs › Mall Stores
  • 18. Competitive Advantage Generic Strategies 18 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Competitive Advantage Competitive Scope Differentiation Lower Cost Narrow Target Broad Target 1.Cost Leadership 2.Differentiation 3A.Cost Focus 3B.Differentiation Focus
  • 19. Strategy 1- Cost Leadership 19 Leverage the economies of scale to produce products/deliver services at the lowest cost in the market. More appropriate for big companies. McDonald’s main competitive advantage relies on a cost leadership strategy. The company is able to utilize economies of scale and produce products at a low cost and as a result, offer products at a lower selling price than that of its competitors. 01 Walmart’s advantage relies on a cost leadership strategy. Walmart is able to offer ‘every day low prices’ through economies of scale. 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 20. Strategy 2- Product Differentiation 20 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Firm has unique resources and capabilities to satisfy customer needs in unique ways. These unique resources could include Patents or other Intellectual Property (IP) 01 Unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess) Talented personnel (e.g. a sports team's star players or a brokerage firm's star traders), Innovative processes 02 03 04 This strategy helps the company set a premium price for the product or service, earn increased revenue per unit. The consumers' loyalty towards the brand forces them to pay the higher cost. This strategy is more appropriate for big companies, not small companies. Examples- Hero, Asian Paints, HUL, Nike athletic shoes (image and brand mark), BMW Group Automobiles, Apple Computer (product's design), Mercedes-Benz automobiles
  • 21. Strategy 3- Focus Strategies 21 An appropriate strategy for small companies. In adopting a narrow focus, the company ideally focuses on a few target markets (also called a segmentation strategy or niche strategy). It is of 2 types- Example- Southwest Airlines, which provides short-haul point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, United, and American Airlines B. Differentiation Focus Differentiated product or service that meets the needs of the focused segment. A. Cost Focus Lower cost to the focused segment
  • 22. Sources of Sustainable Competitive Advantage Icons Slide 22
  • 24. Agenda 24 Agenda 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Agenda 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 25. Our Mission Vision Values 25 Vision This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mission This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Values This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 26. Company Introduction 26 Professional This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Creative This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Talented This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 27. 27 Our Goals Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 28. Dashboard 28 Low This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Medium This slide is 100% editable. Adapt it to your needs and capture your audience's attention. High This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 0 100 20 10 30 40 80 90 70 60 50 70% Low Medium High
  • 29. Roadmap Template 29 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2018 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2017 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2020
  • 30. Bar Chart 30 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2018 2019 2020 Product O1 Product O2 Product O1 Product O2
  • 31. Pie Chart 31 Product O3 Product O1 Product O2 25% 30% 45%
  • 32. Circular Diagram 32 Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 01 03 04
  • 33. Linear Diagram 33 01 02 03 04 Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 34. Comparison 34 VS 70% Male Users This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Female Users This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 30%
  • 35. Organization Chart 35 Name Here Designation This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here
  • 36. Timeline 36 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Start Finish 2017 2018 2019 2020
  • 37. Thank You 37 Address # street number, city, state Contact Number 0123456789 Email Address emailaddress123@gmail.com