Again, you already have marketing Teams that constantly do this analysis. Why is it important that you do it also? This is really a validation step. Your development efforts will take some time. Because of that, it is important that you look to the future and where growth will be. Align your efforts to where the growth can be. There is no use in throwing money after a shrinking market when there is a fast growth market next door. Keep the opportunity cost in mind. Where can you invest to gain significant share.
What is your revenue share of the existing market? The common rule championed by GE is that you have to be number 1 or number 2 in a market to make any money. If you are number 3 or below, you have to move up or get out because you will never be able to be profitable and make a significant return. This is not 100% true but it is valid in all of the cases I have encountered.
Is the total revenue in the market growing or shrinking? Is your share of this revenue growing or shrinking? Get in there personally with your business units and understand their strategies. Float the ideas that you think might work. Ask for their advice.
You have to go through these questions on a market by market and product by product basis. This will give you the "is" map of where your business currently exists so you can make decisions on where to invest and take your go-to-market strategy forward.
What portion of the markets you are in are available to you? Are you shut out of certain segments because of technology, channels, or government limitations? Are the customers in those segments open to working with you?
These limitations can change your planning or help you discover entirely new customers and market segments. Pursue those where you can enter by changing the rules of competition. This is the fastest way to make a impact and grow quickly.
Identify your legacy products, your cash cows, growth opportunities, and dogs. Secure or slow the decline of your cash cows where possible. Align an appropriate percentage of your resources to support this core business.
Put your most innovative people to work on fast growing markets and your best growth products. Again, this sounds totally obvious but I am regularly surprised by the amount of resource that is being poured into historic markets while they are declining instead of applied to new products in growing markets. Organizational inertia is usually to blame.
Again, changing direction here may lead to conflict. Legacies will be invested in these previous markets. You have to move to the future opportunities. Metrics will make these decisions easier and the more visible that you can make this evolution, the easier the transition will go.
This Web site is aimed at capturing some of the basic concepts I use when creating integrated marketing programs and leveraging the internet.
Phil Gibson ©2016