COST

LEADERSHIP

LIFE CYCLES

PRODUCT
DEVELOPM
ENT &
OPERATING
FACTORS

DIFFERENTIATION

MARKET
SEGMENT
FACTORS

BROAD

NICHE

SIZE

BROAD COST
LEADER
These 2
drive costs
down!

x
PFM

SIZE

BROAD
DIFFERENTIATOR

x
PFM

SIZE

NICHE COST LEADER

x
xx

Largest segment
but lowest
grower
automation heavy
(up to 10 by
round 5)!!

xx
x

PFM

SIZE

NICHE
DIFFERENTIATOR

xx

xx

x
xx

50%
margin
charge
lots
keep cash
cows until
they drift
into the
rough cut
them get
out

PFM

SIZE

LIFE CYCLE COST

LEADER

x
x
Dont use!
Line up on
axis

x
x
x
x
PFM

SIZE

LIFE CYCLE
DIFFERENTIATOR

xx
x
x

x
x
PFM