Analyze Your Revenues Strategically

Kevin Appleby discussed how strategic revenue segmentation can provide valuable insights for business strategy and decision making. Highlights include:

– An example from the plastics industry showed how improperly segmented revenues led to unprofitable segments going unnoticed.

– Tools for segmenting revenues include analyzing by product, customer, geography or other groupings to understand profitability and growth.

– Porter’s Five Forces framework can help estimate growth potential in different market segments.

– Segmentation informs strategic choices around what areas of the business to continue investing in, start new initiatives, or stop underperforming segments.

– Accurately understanding variable costs that drive different segments is key to making well-informed decisions.

Watch Back on Demand

Related Articles

Responses

Your email address will not be published. Required fields are marked *