When strategic recovery requires more than cost cutting
How turnaround strategies can rebuild competitive position by resetting the portfolio, operating priorities and sources of future growth.
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Articles
How turnaround strategies can rebuild competitive position by resetting the portfolio, operating priorities and sources of future growth.
Read articleHow leaders can make sharper choices on where to compete, where to invest and what to stop when multiple structural shifts hit at once.
Read articleFocus
A strategically attractive move can become economically destructive when the likely reactions of rivals are excluded from the decision.
Network growth creates value only when incremental demand, unit economics and strategic coverage justify the capital and complexity added.
Strategic challenges
Customer enthusiasm can coexist with weak pricing, expensive acquisition or an operating model that becomes uneconomic at scale.
The consumer proposition must remain attractive while the economics and operating model also work for the franchisee.
POV
Scale should follow evidence that the underlying system becomes stronger, not merely larger, as customers and complexity increase.
Predictability has little strategic value when retention is weak, servicing costs are high or the model transfers excessive risk to the provider.
Strategic impact
Store size, assortment, service model and location type can change capital intensity, customer missions and network economics.
A proposition can create substantial customer benefit while weak differentiation or bargaining power prevents the supplier from capturing much of it.
What we observe
We frequently see detailed personas that create little guidance about which customers, occasions or economics should actually be prioritised.
We frequently see visible expenses cut rapidly while structural complexity and economically weak products or customers remain untouched.