Mix and match these frameworks to solve your next case!

Grow Cut Costs / Improve M&A and

Revenue Improve Profitability Divestures
• The Profitability
Framework (just Price &
Operations • The Profitability
Framework
• M&A (Mergers &
Acquisitions) Framework
Volume) • The Profitability • The 3 C’s + Business
• The 3 C’s + Business Framework (just Fixed & Situation Framework
Situation Framework Variable Costs) • The 4 P’s Framework
• The 4 P’s Framework • The 3 C’s + Business • Porter’s Five Forces
• Porter’s Five Forces Situation Framework
• The Pricing Framework
(scenario dependent)
• New Market Framework
(scenario dependent)
• New Product Framework
(scenario dependent)
Sample Profitability Framework

Price Quantity Variable Fixed

• What is our client pricing
products at?
• What is the demand for
our client’s products?
Costs Costs
• How has pricing • How has demand been • What are the variable • What are the fixed costs
changed over the past changing over the past costs with regards to with regards to salaried
few years? few years? variable labor? Has this labor? Has this been
• What is our pricing • How is the client been changing? changing?
strategy? marketing its products? • What are the variable • What are the fixed costs
• How is pricing expected How have our marketing costs with regards to with regards to rents?
to change over the next efforts affected demand? materials? Has this been Has this been changing?
few years? changing? • What are the fixed costs
• What are competitors • What are the variable with regards to utilities?
pricing similar products costs with regards to Has this been changing?
at? distribution? Has this
been changing?
Sample Pricing Framework

Product Competitive Pricing

Information Analysis Strategy
• What is product and how is it • How much are competitors • What is our breakeven point?
different from what is in market? charging for similar products? • How much does it cost to create
• How innovative is this product • How are competitors thinking about and deliver the product?
compared to others? their pricing strategies? • Has there been any research
• Is the product patented or have • How much does it cost for completed to see how much
similar rights? competitors to create similar customers are willing to pay for the
• Are there similar products in products? product or similar ones?
market that can act as substitutes? • What are substitutions to our • Do customers need to be educated
• Can the product be bundled with client’s product? about the product?
existing products? • What are the potential costs with
• Could product cannibalize any of bringing this product to market?
our current products? • How much will be spent on
• What were R&D costs? marketing?
• How big is market for product?
Sample 3C’s and Business Situation Framework

Company Customer Competition Product

• What defines the company? • Who is the customer? • Who are the competitors in • What is product and how is
• What are the company’s • What are the customer the market and what is their it different from what is in
core competencies? demographics? market share? market?
• How long has the company • How are customers • How quickly is each • How innovative is this
been around? segmented? What kind of competitor growing? product compared to
• What does the company’s growth have each of these • Do our competitors offer others?
financial performance look segments seen over the products or services that • Is the product patented or
like over the past few past few years? How are our client does not? have similar rights?
years? they projected to grow? • How is the competition • Are there similar products in
• What is the company’s • How sensitive are marketing their products? market that can act as
management team like? customers to prices? • How is the competition substitutes?
• How strong is our • What are the distribution pricing their products? • Can the product be bundled
company’s brand? channels through which the with existing products?
• What are our client’s client reaches its • Could product cannibalize
competitive advantages? customers? any of our current products?
What are our client’s • What were R&D costs?
weaknesses? • How big is market?
Sample 4 P’s Framework

Product Price Promotion Place

• What is the product and • What is our current pricing • What marketing strategies • Which distribution channels
how is it different from what strategy? have been implemented so are used to distribute the
is on the market? • What is our breakeven far? Which have been products?
• How innovative is this point? successful, and which have • Which channels best reach
product compared to others • Has there been any • not? our customers?
in the market? research completed to see • What are the ways • Is a salesforce needed to
• Is the product patented or how much customers are competitors have been reach our customers?
have any rights that can willing to pay for the product marketing their products? • What channels have been
protect it from being or similar ones? • How much is spent on most successful for our
copied? • Do customers need to be marketing? client in the past? How
• Are there similar products in educated about the about competitors?
the market that can act as product?
substitutes?
• Will the product cannibalize
any of the client's current
products?
Sample Porter's Five Forces Framework

Threat of New Competitive Supplier Buyer Power Threat of

Entrants Dynamics Power • Who are the key Substitutes
customers? What is
• What are the barriers • Who are the other • Howmany suppliers the cost for buyers to • Are there any notable
to entry in this • competitors in the are there in the switch to different substitutes in the
industry? market and what are market? competing market for our client’s
• How do economies their market shares? • Who are the key companies? products that have
of scale work in this • How quickly are the suppliers? similar prices and
• How much qualities?
industry? other competitors • How much bargaining power do
• What are some cost growing? bargaining power do customers have? • What is the cost for
advantages our client • What are our client’s suppliers have in the switching to other
has? market? Is there a lot • Do customers have similar products for
competitive equal information to
• What kind of access advantages? What of differentiation the customer?
the products on the
does our client have are our client’s amongst suppliers? market?
to distribution weaknesses?
channels? • Do competitors
• How is our client’s compete on price in
product protected this market?
from new entrants?
Sample Market Entry Framework

Market Competition Market Entry

Situation • Who are the main competitors and
what are their market shares?
Considerations
• What is market size? • How do the competitors’ products • What are the key risks to consider?
• What is projected market growth/ compare to our client’s? • Are there any barriers to entry?
decline over next 1, 3, 5, or 10 yrs? • How will the competition respond? • Would it be more profitable to enter
• At what rate has market been • What are our client’s competitive through an acquisition, a joint
growing/ declining over the past 1, advantages? venture, or by creating a business
3, 5, or 10 yrs? from scratch?
• Where is the market in its life • How will the client exit the new
cycle? market if things don’t go well?
• Who are customers and how are
they segmented?
• Will client’s products become less
useful over time with tech
advances?
• Have there been major changes in
the market lately?
• What are key factors that drive the
industry?
Sample New Product Framework

New Product and Market Strategy Feasibility

Product Portfolio • Who are our customers and how can • How much funding does this new
we best reach them product require?
• What is the new product and how is • How will this product expand our • Where will the funding come from?
it different from what is currently on customer base and increase sales? • If debt is required, can the client
the market? • Is there any data or research support debt?
• How innovative is this product supporting that customers want this • Does the client have the
compared to others in the market? product? manufacturing or production
• Is the product patented or have any • Who are the main competitors and capabilities to produce this product
rights that can protect it from being how much market share does each on its own or does it need help from
copied? firm have? other parties?
• Are there similar products in the • How will competitors respond to this • Do we have relationships with the
market that can act as substitutes? new product? right suppliers that will help us create
• How does the product fit within the • Are we entering a new market or are this product?
client’s current product line? we serving the market we currently • How will this new product impact our
• Can the product be bundled with any serve? client’s profitability?
existing products?
• Will the product cannibalize any of
the client’s current products?
• Is the client replacing an existing
product?
Sample M&A Framework

Target Target Post-Acquisition Risks and

Market Company Strategy Benefits
• If our client doesn’t • How are the potential • How much is client going to be • Has the target’s revenue and
purchase the company, acquisition target’s paying? What are deal terms? profitability been increasing or
will a competitor? financials? • Is the price fair? decreasing over the past few
• How healthy is the • Has the target’s • How will the deal be financed? years?
industry the target is in? revenue and • Will our client be taking on debt, and • How special are target’s
• How will competitors profitability been if so, can the client support it? products?
respond to this increasing or • What is target’s customer base
• Why is client thinking about
acquisition? decreasing over the purchasing the asset or company? like?
past few years? • How healthy is industry the
• Are there potential alternatives?
• How unique are the target is in?
target’s products? • How does company fit within client’s
broader product portfolio and • How will competitors respond?
• What is the target’s • Are there legal or regulatory
strategy?
customer base like? reasons this acquisition may
• Are there potential revenue / cost
synergies? not work?
• Are there financial reasons (i.e.,
tax advantages) that make this
worthwhile?