Problem landscaping

Company

Customers

Industry
Growth Rate
Market share

Demographics
Price elasticity

Competition
Major players
Market share

Products/Services
Price

Problem

Profitability
Product related
problem
Service related
problem

Internal
(market share).
Compare with
competitors

Distribution related
problem

Sales Volume

Promotion related
problem

Identify Revenue
streams / Product
Mix
Macroeconomic
factors

% split of total
revenue
Revenue
Anything unusual in
balance of %

Industry declining
External
(market size)

Have those %s
changed lately?

Substitutes

Changes in
preferences

Are we competitively
priced or underpriced?

Identify reason
- To gain market share
- Competitive response
Profits declining
Sales price

Look at price elasticity of

customers

If inelastic, increase price

Fixed Costs
- Salaries
- Depreciation
- Office and godown rental
- Plant Maintenance
Identify major costs

Variable Costs
- Raw material
- Electricity

Any major shifts in

costs

- Labor
- Transport
Other Costs

Cost

Do costs seem out

of line

Benchmark cost
against competitors

- R&D
- Interest expense

Market entry

Motivation

State of the
current and future
market

Competition

Business sense

How to enter

Why into new

industry?

Size

Who is our
competition?

Product
differentiation

Start from scratch

Why this
particular
industry?

Growth Rate

What are their

market shares?

Substitutions

Acquisition

Our pricing

Merger

Any objectives
other than
profitability? (eg.
expand customer
base)

Stage in lifecycle

Who are the Customers and

their segmentation

Barriers to entry:
Capital
Distribution channels
Proprietary technology
Govt policy
Supply side constraints

Synergies with current

business

Industry Analysis

Overall Industry

Suppliers

Future

Size

Has the supply been

consistent?

Players entering or leaving

the market

Growth Rate

What is going on in their

industry?

Mergers and acquisitions

Stage in lifecycle
Barriers to entry
Who are the Customers and their
segmentation

Major players and their market

share

Any major changes - new players,

new technology, new regulation

Drivers - technology, brand,

talent

Mergers and Acquisitions

Due diligence on
company and
industry

How much are

they paying?

Why are they buying

it?

Market share of
company - rising or
declining?

Is the price fair?

Why this particular

company?

Profits of company rising or declining?

Access to capital

Why does the

company want to
sell itself?

How are they going

to pay?

Motivation

Reasons could be:

Profitability
Increase customer base
Diversify holdings
Pre-empt competition
Incorporate synergies
Gain tax advantages

How will competitors

respond to the acquisition?
Any legal hurdles?

Pricing of a product

Product investigation

What is special about our

product?

Are there similar products

out there,and how are they
priced?

Pricing Strategies

How many times is our

product faster/better/more
efficient than the current
product in the market?

Cost-based pricing

Competitive Pricing

Value-based pricing

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