A Framework for Grow th in Turbulent Times Based on the Profit - - PowerPoint PPT Presentation

a framework for grow th in turbulent times
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A Framework for Grow th in Turbulent Times Based on the Profit - - PowerPoint PPT Presentation

A Framework for Grow th in Turbulent Times Based on the Profit from the Core growth framework by Bain & Company Presented by Kevin Johnson, CEO of Agenda Who is Warehouse Direct? Adjacency Growth Framework: What? & Why?


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A Framework for Grow th in Turbulent Times’

Based on the Profit from the Core growth framework by Bain & Company

Presented by Kevin Johnson, CEO of

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Agenda

  • Who is Warehouse Direct?
  • Adjacency Growth Framework: What? & Why?
  • Successful and unsuccessful examples
  • Building an Adjacency Map
  • Determine your nearest Adjacencies
  • Relatedness framework
  • Attractiveness framework
  • Theoretical Exercise to Real World Implementation
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Adjacency growth framework: Theory

Expand Revenue and Profits into new segments related to your core that utilize and reinforce your core. (i.e. Geography, Products, Customers, etc.)

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Before Adjacency Growth: Strengthen & Create an Advantage in your Core

Core Defined as the majority of your:

  • Customers
  • Products
  • Geographies
  • Channels
  • Profits

Not meant to limit potential.Meant to create a starting point (even if historical). If an Adjacency is complementary to your Core, strengthening Core helps your reach full potential in Adjacency and vice versus.

Before Adjacency Growth: Define your Core

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Why? Odds of Sustained Growth & ROI exceeding cost of capital fall further from your core

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Examples: Properly define your core then expand from it to leverage and reinforce your core

Repeatable Franchise always close to core, each adjacency reinforced the Core No sharing of customer, cost or capability… total failure, lost market share in core

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Little sharing of customer, cost or capability, little competitive advantage

Common Customer, Cost Structure, Create Competitive advantage & block emerging competitive threat

Examples: Properly define your core then expand from it to leverage and reinforce your core

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Map Potential Adjacencies: Example Framework

Source: Profit from the Core, By Chris Zook

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Prioritize potential Adjacencies Based on Relatedness to Core, Attractiveness and market Size

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Determine Relatedness Based on sharing with your Core

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Generaly, success rates vary by Relatedness to core

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Map Potential Adjacencies by steps from core

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Determine Attractiveness of each potential Adjacency

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Plot Relatedness & Attractiveness

  • n Adjacency Prioritization Framework
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Should your organization pursue Adjacency Growth? Pitfalls and Learning

It’s not for the faint of Heart! It’s easy to talk about and much harder to successfully implement! Like with anything in life…this has to resonate with you. You have to be passionate about making this complex model work.

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Adjacency growth framework: Theoretical Exercise to Reality

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What do these all have in common?

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Warehouse Direct Adjacency Map

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Project Management

12 Commandments + PM tools 27 slides

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A Framework for Grow th in Turbulent Times’

Based on the Profit from the Core growth framework by Bain & Company

Presented by Kevin Johnson, kevinjohnson@warehousedirect.com 847-631-3491