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Ó 2002, Andover Technology Partners
Strategies for Growth
A large part of ATPs business
is developing strategies for growing revenues and earnings. ATP prides itself on its understanding of
the markets and industries of interest to our clients. We will analyze markets and industries to
identify where the growth is. And, we
will formulate a strategy for our clients to retain as much of the value
created as possible. There are two analysis
elements that are key to developing a comprehensive strategy for growth –
Market Analysis and Industry Analysis.
Market Analysis – We assess the attractiveness of
markets with respect to current size and future growth. The key factors that impact market prospects
are identified. These factors may be regulatory,
macroeconomic, or driven by developments in technology. All of these effects are studied in detail to
understand their impact on the market using comprehensive, up-to-date databases
and forecasts of the industry. Because
there is always some degree of uncertainty and the markets are frequently
subject to change based on developments in these factors, we identify risk
factors that our clients need to be aware of.
In many cases, we will conduct surveys to obtain insight to trends in
customer preferences. All surveys are
constructed in a manner to provide meaningful, quantitative information. Confidence intervals are always assessed when
there is enough data for meaningful results.
Industry Analysis - ATP analyzes the industry using a
process developed by Michael Porter – the Five-Factor approach. This way we help the client understand the
dynamics that exist between the industry’s existing competitors, the industry
and its customers, the industry and its suppliers, the threat of substitutes
and the threat of new entrants. Analysis
of these dynamics reveals where the value is created and who benefits most from
the created value. In all industries
competitors, suppliers and customers all compete for value. The bargaining power of customers and of
suppliers generally determines how much value they keep. Existing competitors are threatened by new
entrants if entry barriers are low enough.
Existing competitors are also threatened by substitutes to their
approach for addressing the customer’s needs.
Industry Analysis will help guide us toward the strategy that enables
our clients to capture the most possible value.
Threat of New Entrants
–Intensity of rivalry among existing market participants
– Bargaining power of customers
– Bargaining power of suppliers
– Threat of substitutes
Threat
of new entrants
Developing a Plan – The objective of the Market
Analysis and Industry Analysis is to generate the information necessary to
develop a plan for management to implement.
The plan is typically developed interactively with the client so that it
works for the client’s particular situation.
In every case, we attempt to develop a plan that maximizes the potential
value for the client while minimizing the risks for the client. Key Risk Factors that management should
continuously monitor and adjust for are identified. The plan will identify strategy adjustments
that the client should consider upon a change in Risk Factors.