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Sensing Vulnerability

They worked with us to define our new market strategy and provided on-going, practical execution support and guidance to ensure it was successful.

Sustaining value over time involves keeping the company’s customers despite being enticed by competitors or the emergence of new disruptive business models. Every customer the company keeps is one less it needs to win. Sensing the company’s vulnerability to disruption is critical when determining what needs to be done now to improve long-term competitiveness. Vulnerability comes in many forms:

Customers – when serving some customers is not profitable without cross-subsidising, when the customer needs only part of the product but has to buy the whole thing, when customers can’t access the product conveniently or want something slightly different, or when the customer journey doesn’t meet expectations.

Supply – when customers use the product infrequently or partially, when up-front costs are fixed and high, or when supply is unpredictable.

Distance – when customers are unable to have a direct relationship with the manufacturer, when lead-times are too long or when the end-customer price is inflated by intermediary margin

Re-imagination – when intermediaries don’t enhance value to the end-customer or when industry margins are too high relative to other industry. New entrants will see the world differently.

We work with our clients to assess vulnerability, evaluate their options and take action to enrich the value proposition and the customer journey.

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