This week’s podcast is about core vs. adjacency growth. This is a good framework for thinking about growth in digital businesses.You can listen to this podcast here or at iTunes and Google Podcasts.Most of this is a summary of work by Chris Zook at Bain's strategy practice. I am citing the books:
Most all sustainable growth is based on 1-2 strong cores.
A profitable core is centered on the strongest position in terms of loyal customers, competitive advantage, unique skills, and ability to earn profits.
Six growth adjacencies:
New customer segments:
Micro-segmentation of current segments
Unpenetrated segments
New segments
New geographies
Global expansion
Local expansion
New channels
Internet
Distribution
Indirect
New products
New to world
Complements
Support services
Next generation
Just new products / services
New Businesses
New to world needs
New substitutes
New models
Capability adjacencies
New value chain steps
Forward integration
Backwards integration
Sell capability to outside
How to assess an adjacency move:
Factor 1: Adjacency is tightly tied to a strong core.
Factor 2: An attractive adjacency market in terms of profit pools
Factor 3: The ability to capture economic leadership in that market. Competitive advantage as an attacker and then an incumbent.
——-I write and speak about digital China and Asia’s latest tech trends.I also run Tech Strategy, a podcast and subscription newsletter on the strategies of China / Asia tech companies.This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.
Podden och tillhörande omslagsbild på den här sidan tillhör Jeffrey Towson. Innehållet i podden är skapat av Jeffrey Towson och inte av, eller tillsammans med, Poddtoppen.
