Purpose – Many companies find that they have widely differing levels of profitability and success in different parts of their business. There are a range of well‐established accounting tools to quantify the variability in performance but managers still have difficulty taking action: perhaps...

Purpose – Most managers understand that the ability of their business to out‐perform competitors and earn strong returns is greatest when they stick closely to markets that they know well and where they have all the advantages of the incumbent. But if successful strategy is all about playing...

Purpose – At some point in their career, almost all managers will find themselves in a business that is under‐performing relative to expectations. But how do we know whether the expectations are reasonable? How can we tell whether we have an operational problem that requires operational...

Purpose – Acquisitions can be a powerful tool to achieve growth, enter new markets and expand the range of a firm's capabilities. But with the highly competitive market for acquisitions and the correspondingly high acquisition prices, all too often transactions fail to create value for...

Purpose – Successful growth strategy has a lot to do with careful preparation to identify attractive markets and new sources of customer value and competitive advantage. If the plan for achieving growth includes acquisitions, then we also have to consider company valuations and the...

Purpose – Previous Reaching for value columns, have looked at companies and industries in historical terms. (How did smart companies use strategic market positioning (SMP) to make acquisitions and other investments? How did less smart companies pick the wrong growth path?) This column aims to...

Purpose – The purpose of this paper is to show that most retail and franchise businesses have the goal of rapidly expanding to create a nationwide or even international network of outlets. Achieving that goal requires more than just having an appealing offering that works in one city. Business...

Purpose – Manufacturers and product suppliers with a strong market share in their selected segments often enjoy good profitability but find it hard to achieve strong growth without diversifying into new product segments where their established competitive advantage may no longer apply. One...

Purpose – Most business leaders buy into the logic of differentiating their products from those of competitors, and of offering more complete solutions to customer needs. But what if you find that other competitors with stripped‐down offerings are gaining share? Does that mean you should...

Purpose – Most investors and business leaders understand that the internet has created a few high‐profile success but many more start‐up businesses that have destroyed rather than created value. As a result, many executives have dampened expectations for the transformational potential of...