Diversification "out of the box" - Roland Berger

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2.3RELATED DIVERSIFICATIONDistance to core needs to be defined properlyCRITERIACustomersharingCostsharingCapabilitysharingChannelsharing (tbd)CompetitorsharingDEFINITION> Percentage of > Percentage of the > Extent to which the > Percentage of > Percentage ofincrementalrevenue generatedfrom existingcustomer basenew cost base thatlends itself tosharing with theexisting businesstarget businessutilises existingtechnology andbusiness modelsadditional revenuegenerated throughexisting channelplayersincremental newmarket made up ofexisting competi-tors (excludingshare held byentrant)0-20% 0-5% No technology orbusiness model0-20% 0-20%21-40%5-15%overlap21-40%21-40%41-60%16-25%41-60%41-60%61-80% 26-35% Same technology 61-80% 61-80%and businesses81-100% >36% models81-100% 81-100%CRITERIAWEIGHTING1.00 1.00 1.000.50 0.75Source: Roland Berger30
2.3RELATED DIVERSIFICATIONIdentified growth opportunities can be prioritized by analysis ofmarket attractiveness and odds of successCase example5Marketattractiveness> Size> Growth> ProfitabilityRecommended focusof further analysis4321Medical/wound careInternalmedicalSpecialtybandagesExternal medicalCompositesIndustrial tapes (specialty)Decorative industrial flooring1 2 3 4 5Odds of success> Relatedness to core business> Competitive dynamics (e.g. share of Top 3 players)> Ability to differentiate (vs. competitors)EUR 500 mmarket sizeSource: Roland Berger31
Page 1 and 2: Diversification "out of the box"Mun
Page 3 and 4: A. OUR APPROACH -A structured conce
Page 5 and 6: Our modular approach consists of fo
Page 9 and 10: 1.1A proper bottom-up portfolio seg
Page 11 and 12: 1.1BACKUPWrong business definition
Page 13 and 14: 1.3 EXAMPLEThe definition of core b
Page 15 and 16: 1.4ILLUSTRATIVEPortfolio options sh
Page 17 and 18: 1.4ILLUSTRATIVETop-down targets for
Page 21 and 22: 2.1BACKUPThe portfolio logic need t
Page 23 and 24: 2.2ILLUSTRATIVEThe arithmetic for v
Page 25 and 26: 2.2EXAMPLE"Underperformer" business
Page 27 and 28: 2.3RELATED DIVERSIFICATIONIdentifyi
Page 29: 2.3RELATED DIVERSIFICATIONOdds of s
Page 33 and 34: 2.3RELATED DIVERSIFICATIONIndicator
Page 35 and 36: 2.3UNRELATED DIVERSIFICATIONConglom
Page 37 and 38: The ability of the holding to contr
Page 39 and 40: Successful organizations design a c
Page 41 and 42: … that vary by the adopted modelO
Page 43 and 44: BACKUPResources needed at the cente
Page 45 and 46: ILLUSTRATIVEThe role of the corpora
Page 47 and 48: EXAMPLEAustralian conglomerate Wesf
Page 49 and 50: E. ROLAND BERGER - Our experienceRo
Page 51 and 52: Excellence in strategy consultancy
Page 53 and 54: Our expertsHauke MojePartnerFlorian

Diversification "out of the box" - Roland Berger

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