2. Is Your Company Growing? Your company and the 2 x 2 Matrix. Source: Charan, R., & Tichy, N. M. 1998. Every Business Is a Growth Business. Random House, New York.

3. Business Growth Needs  Look From Outside In  Segment Your Market  Enlarge Your Pond

4. Look From the Outside IN  Understanding Customers Needs Will Secure Your Future  Continuous Reinvention  Eliminates Blinders

5. Chrysler’s Minivan Baby Boomers Getting Older (With Growing Families) Lifestyle changes (Soccer Moms) Space Problems Vans Were Too Large (Commercial) Station Wagon Sales Were Falling Morphed Pickup, Station Wagon, Passenger Car The Minivan was Born!!!

6. Enlarging Your Pond  Forces Outside Thinking  Market Share, i.e.,10X Rule  Any Related Marketplaces That Can Be Served

7. Taco Bell Mexican Fast-Food Business $80 Billion v Quick-Service Restaurant Business v $800 Billion v Thousands Of New Points of Access

8. Taco Bell’s Growth (in $ millions)

9. Segmenting The Market # Break the Market Down Into Pieces # Don’t Have To Sell The Entire Market To Make A Profit # Easy Way To Expand Your Pond # Umbrella the Market And Specialize

10. Nike  In 1984 Nike Had 1/3 Of The Athletic footwear Market  REEBOK (women’s footwear, stylish footwear)  Nike’s Market Share Fell By Half In Three Years

11. Nike Segments The Market Basketball Tennis Cross-training Aquatic Footwear Sports Apparel Accessories 1/2 The U.S. Market Sales Growing At 39% Profits at 41% We are in the sports business, not the shoe business! We are in the sports business, not the shoe business!

12. Nike Re-Segments The Market Basketball Michael Jordan His Airness: Air Jordan Charles Barkley Aggressive Style: Force Scottie Pippen Quick, High-Flying Style: Flight

13. Creating The Framework Customers -- Existing And New Needs -- Existing And New Existing Customers With Existing Needs New Customers With Existing Needs New Customers With New Needs Existing Customers With New Needs

14. The 2 x 2 Matrix Existing New Existing New Customers Needs A B D C

15. Quadrant A Existing Needs And Existing Customers Where Most Companies Operate Less Risky Than Other Quadrants Core Competence, Cost Cutting, Reengineering, redesign Price Wars, Zero-Sum game Companies Who Have Given Up On Growth Stay Here

16. Quadrant B New Customers And Existing Needs Geographic Expansion

17. Coca-Cola Mature Market Coca-Cola Has Been Global For Decades 50% Of World Market 70% Of Revenues From Abroad

18. Average Coke Consumption 8oz per capita per year

19. Quadrant C New Customers And New Needs High Risks High Profits New High Tech Players Will Be Here

20. Company's That Moved Into Quadrant C Motorola (Cellular phone business: took a huge bet on an unproven need in a market it had never served) Hewlett-Packard (Instruments for Measuring moved on to printers, computers, fax, multipurpose machines, PDAs and more) Seagate Technology ---Conner Peripherals 3.5 diskdrive

21. Quadrant D Existing Customers And New Needs Develop Ideas about Total Needs Define and meet new needs for customers Expand Into Customer Service

22. New Needs Polaroid Camera Sony Walkman Chrysler Minivan

23. GE’s Dramatic Change 1/2 Worlds Market In Power Generation Equipment Acquired Nuovo Pignone Providing Services To Customers

24. The 2 x 2 Matrix for GE Power Systems in 1995 Existing New Existing New Customers Needs $10 Billion $20 Billion GE Large Power Generation Equipment

25. Acquisition of Italy’s Nuovo Pignone Broadened pond to $25-$30 billion Also $4 billion of complementary business Existing New Existing New Customers Needs A B D C $20 Billion $5-10 Billion

26. Moved into Supplying Services Moved into supplying equipment Enlarged pond to $48 billion Existing New Existing New Customers Needs A B D C $20 Billion $5-10 Billion $18 billion

27. GE Power Systems 1998 pond is $700 billion 37 times as big as the Market defined and served three years previously Existing New Existing New Customers Needs A B D C $700 Billion From the Wellhead to the Consumer