How to increase market share/raise revenues without cost-cutting

Question

Good evening,

I am asking how to increase market share and how to raise revenues without costcutting..

What are the best frameworks for cases like this and what strategies do you recommend? Espacially in terms of pricing and marketing..

Thank you !! :-)

Answer 1

Hi!

First of all - increasing the revenues is not related to cost-cutting. You may take / not take into account cost-cutting if you want to increase the profits. In that case, you have to levers - growing revenues and cost-cutting.

The framework depends on the part of the case where you have this question:

If it is the main objective of the case, I will build the structure depending on this objective. In some cases ("Growth strategy") I will use a broad structure (see below), in others (e.g. “how to increase the excessive luggage revenues for an Airline”) I will use P, Q and the Process.

Here is the broad structure that you can adapt to your industry:

Analyze the market:

Size and growth rates
Segments (geographical, customer, product)
Distributors / Suppliers
Regulation
Key market trends

Analyze the competitors:

Market shares, growth rates, profits
Product / customer / geographical mix
Products (Value proposition)
Unit economics (Value proposition vs. price vs. costs)
Key capabilities (Distribution, supply, assets, knowledge, etc)

Analyze our company:

Market share, growth rates, profit
Product / customer / geographical mix
Products (Value proposition)
Unit economics (Value proposition vs. price vs. costs)
Key capabilities (Distribution, supply, assets, knowledge, etc)

How to increase revenues:

How to increase the scope: Product / customer scope, geographical scope
How to improve value proposition (How to fix your weaknesses and improve your strengths; Potential increase in price and volumes)
How to answer the competitors (Unique or hard to build property and contracts; Customers / suppliers / complements with lock-in; Reputation and relationships; Organizational capabilities; Product features and know-how)
Other benefits of scale (Spreading Fixed costs, Change in technology, Bragaining power)

If it is the questions on creativity in the middle of the case I would use the following framework:

Organic growth

Vertical integration
Horizontal integration

Non-organic growth

Existing product (Value proposition, price, volume)
New markets
New products

Best!

Answer 2

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Answer 3

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Answer 4

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