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WK #5 (Strat): Customer Market Segmentation PDF Print E-mail

The Business Strategy Analysis starts with the Markets and the Customers to whom the Company sells products and services. 

The segmentation, trending and analysis of the company revenues categorized into reasonable segments reveals the concentration of customers, risk of current business continuation and strength of the company sales base versus competition.  In many cases this analysis will point toward obvious actions to be taken to first defend the sales base and then to increase sales growth.

Customer Analysis 

  • Concentration (Pareto analysis) – Risk profile of sales / customer base
  • Key Customer Segmentation
  • The Breadth of Product/service within Customer base

Market/Customer Segmentation

  • Identify customer segments and sub-segments
  • Segment Size and growth rate
  • Company and Competition Market Share (SOM) 
    • Is the Company Gaining or losing share? 
  • Company Gross Margin by Segment 
  • Customer Expectations by Segment
  • Price, Delivery, Quality, Service & Technical support 

Company Performance vs. Expectations

  • Company evaluation - Why do we succeed/fail in different segments?
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