Analysis Without Paralysis

Babette E. Bensoussan is best known as an international specialist in strategy and competition, and as founder and director of The MindShifts Group. With an excellent breadth and depth of knowledge she has undertaken major studies for and consulted to Australian and Global Fortune 500 companies. She has undertaken over 300 competitive intelligence projects and consulted to a wide range of industries and markets.  Babette is a brilliant presenter and communicator, and conducts training, workshops and individual mentoring on a worldwide basis to assist with the development and implementation of competitive strategies, competitive intelligence programs, and strategic planning. Apart from her active business endeavours, Babette has taught Competitive Intelligence in undergraduate business and MBA programs both in Australia and China. In 2012, she was appointed Adjunct Professor, School of Business, University of Technology Sydney.    Dr. Craig S. Fleisher is the Chief Learning Officer (CLO) of one of the globe's leading intelligence consultancies, Aurora WDC. Google’s top-cited CI scholar and a frequent keynote speaker, Craig has authored several essential CI books including Analysis without Paralysis 2nd Ed (FT Press, 2013), Business and Competitive Analysis (FT Press, 2007), and Strategic and Competitive Analysis (Pearson, 2003), among others. A former SCIP president, current Fellow and Meritorious Award winner, he was inaugural chair of the Competitive Intelligence Foundation, and founding editor of the Journal of Competitive Intelligence and Management. His PhD in Business is from Pittsburgh's Katz Graduate School of Business. An internationally-focused adviser instructing mainly executive learners, he has held positions including MBA Director, Business School Dean and Chaired Professor at a variety of universities in over half a dozen countries.   Bensoussan and Fleisher are also the authors of the well known Business and Competitive Analysis book, a must have for any corporate analyst.

Acknowledgments  ix

About the Authors  xi

Chapter 1 The Role of Analysis in Business Management  1

The Increasing Need for Effective Analysis  7

Concluding Observations   9

Chapter 2 The Analysis Process  13

What Is Analysis?  16

Chapter 3 BCG Growth/Share Portfolio Matrix  23

Description and Purpose  23

Link to the Experience Curve  24

Link to the Product Life Cycle  25

Combining the Experience Curve and Product Life Cycle  26

Strengths  29

Weaknesses  30

How to Do It  32

Case Study: Google as Viewed in a BCG Portfolio Planning Matrix  39

Chapter 4 Competitor Analysis  45

Description and Purpose  45

Strengths 47

Weaknesses  47

How to Do It  48

Case Study: Chinese Mobile Phone Market 59

Chapter 5 Driving Forces Analysis  63

Description and Purpose  63

Strengths 64

Weaknesses  65

How to Do It  66

Case Study: Driving Forces in the Digital Music Market  75

Chapter 6 Financial Ratios and Statement Analysis  81

Description and Purpose  81

Basic Concepts Underlying Financial Ratio and Statement Analysis (FRSA)  81

Components of Financial Statements  82

Assessing the Appropriateness of Ratios  83

Strengths   84

Weaknesses  84

How to Do It  86

Activity or Efficiency Ratios  87

Leverage or Solvency Analysis Ratios  90

Liquidity Analysis Ratios  91

Profitability Analysis Ratios  93

Other Analysis Ratios: Capital Market or Shareholder Returns  95

Methods of Ratio or Measure Comparison  98

Consolidation and Segmented Analysis  102

Case Study: FRSA of the Three Large North American Warehouse Clubs 104

Chapter 7 Five Forces Industry Analysis  109

Description and Purpose  109

Threat of New Entrants  111

Bargaining Power of Suppliers  112

Bargaining Power of Buyers  113

Threat of Substitute Products or Services  114

Degree of Rivalry Among Existing Players 115

Strengths 116

Weaknesses  117

How to Do It  118

Case Study: Applying the Five Forces Model to the U.S. Passenger Airline Industry  120

Case Study: Applying the Five Forces Model to the Global Pharmaceutical Industry  123

Chapter 8 Issue Analysis  127

Description and Purpose  127

Strengths 129

Weaknesses  130

How to Do It  131

Examples of Issue Analysis in Practice  144

Chapter 9 Product Life Cycle Analysis  147

Description and Purpose  147

Strengths 156

Weaknesses    157

How to Do It  158

Case Study: Apple’s Product Life Cycles and Growth Potential from the iPod to the iPad  163

Endnotes  165

Chapter 10 Scenario Analysis  167

Description and Purpose  167

Methods for Generating Scenarios  168

Strengths  172

Weaknesses  173

How to Do It  174

Case Study: Scenarios for Traditional and Emerging Forest Products Enterprises  179

Endnotes  184

Chapter 11 Macroenvironmental (STEEP/PEST) Analysis  187

Description and Purpose  187

Strengths  191

Weaknesses  192

How to Do It  193

Case Study: STEEP Analysis of the Life and Death of Brands  197

Chapter 12 SWOT Analysis  199

Description and Purpose  199

Strengths 202

Weaknesses  202

How to Do It  204

Case Study: Lockheed Martin Corporation  213

Endnote  222

Chapter 13 Value Chain Analysis  223

Description and Purpose  223

Strengths  229

Weaknesses  230

How to Do It  231

Case Study: Value Chain Analysis of Walmart Stores  242

Chapter 14 Win/Loss Analysis  249

Description and Purpose  249

Strengths  250

Weaknesses  252

How to Do It  254

Win/Loss Case Study: Email Marketing Solutions  260

Index  263