Booz & Co. has created a methodology to assess “big and bold” growth ideas, based on five lenses:
1. Share of wallet. “What other products or services do our customers buy or want that we could provide?”
Example: The Virgin Group, a global conglomerate of 300 consumer companies, continuously seeks new growth in lifestyle markets.
2. New regulations. “How can we shape or respond to the regulatory environment to create new and profitable business opportunities?”
Example: When Walmart decided to sell only concentrated laundry detergents to use less shelf space, increase logistics efficiencies and lower costs, the move precipitated a shift that affected every detergent manufacturer.
3. Technology and applications. “Where could we use existing products or technologies to create customer value in a different market?”
Example: Church & Dwight Co., the household products manufacturer that owns the Arm & Hammer brand, started promoting baking soda as an odor-eating air freshener. Today, you’ll see the Arm & Hammer brand on toothpaste, deodorant and kitty litter freshener.
4. Distinctive capabilities. “How can we use our own distinctive capabilities to create new offerings for our existing markets or enter new markets?”
Example: A building company used its projectcapabilities to make the jump to managing Formula 1 auto races, where preparing a track, installing safety fencing and constructing temporary stands proved critical.
5. Business models. “How could we better serve our customers to increase profitability and customer value?”
Example: Fuji Xerox Co. faced closure in Australia, because the cost of importing parts from Japan made it uncompetitive. That’s when it shifted its business model and began remanufacturing components recovered from its installed base of copiers.
— Adapted from “Billion-dollar Ideas: Finding Tomorrow’s Growth Engines Today,” Greg Lavery and Chris Manning, strategy+business.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/13205/finding-the-next-big-growth-idea "