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An Introduction to nxtMOVE 2010 We provide fact-based advice to clients nxtMOVE delivers evidence-based, strategic advice focused on customers, markets, competitors and channels. We enable our clients to identify and capitalize on market opportunities and stay ahead of the competitive curve. 2 We present market informed decisions • Surveys (web & telephone) • Online diaries • Focus Groups • • • • • 3 • • • • nxtMOVE ANALYSIS & SOLUTION POS Data Market Research Previous Analysis Internal Expertise Brainstorming • • • • • Demographic Macro-economic Press releases Articles Product literature Trade Groups Academics Niche Consultants Regulatory bodies • • • • Suppliers Competitors Distributors Retailers Based on our capabilities, we provide a range of strategic, advisory services to clients Strategic Market Analysis Competitive Intelligence & Benchmarking New Proposition Development Strategic Acquisition Services nxtMOVE: Building Blocks for Strategy Development 4 Strategic Market Analysis nxtMOVE provides a clear and comprehensive assessment of how markets are structured, the main drivers and pressures which influence them, what is likely to happen in the future, the opportunities for your company and how best to exploit them: Strategic Market Analysis Growth of Client X against the Market Growth between 2004-06 40.0% Client X Growth Rate - 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Market Growth Rate (Average) 2004-06 5 40.0% • market opportunity assessment • market entry feasibility analysis • assessment of market trends and key drivers • market modelling and pragmatic market forecasting • scenario planning and commercial risk assessment • market portfolio analysis How We Build Strategic Recommendations Internal Diagnostic External Analysis Growth Opportunities “Where are we now?” • Differentiators • Strengths & Challenges • Long-term Goals • Customer Perceptions • Market Dynamics • Competitive Landscape • New Customers • New Services • Positioning for long-term goals Gap Analysis Opportunity Analysis Strategic Decision Planning the Implementation Strategic Action 6 Competitive Intelligence & Benchmarking Competitive Intelligence & Benchmarking nxtMOVE evaluates competitors’ strengths and weaknesses, building a comprehensive view of their priorities and capabilities and helps you to develop effective counter measures • best practice development Collection Data Data • benchmarking and evaluation • performance measurement Synthesis Information • development of sales tactics • hot topic monitoring • trend analysis and forecasting Application Intelligence • ‘how to sell against’ tools Impact on strategic decision-making process 7 New Proposition Development New Proposition Development nxtMOVE provides a comprehensive repertoire of new proposition development services, from idea generation and testing through market forecasting and full commercial business case development: • idea generation • detailed market assessment and research • external and internal concept testing • product testing and improvement • competitor response forecasting • idea screening and evaluation • business case development and planning • distribution channel development 8 Familiarization Commercial viability Finalize assessment business case Develop media and Build and develop (demand / competition/ pricing / margins) ideas, test Business model qualitatively development Screen and shortlist Develop / refine Blue sky idea generation Quantitative evaluation propositions Test markets marketing plan Roll-out planning Purchase physical Implementation resource support Finalize partnership / contracts Strategic Acquisition Services Strategic Acquisition Services nxtMOVE provides support in the key areas of the acquisition decision making timeline. From market identification and testing, through to customer due diligence and portfolio company strategic support. Identify and evaluate potentially attractive markets Validate target cash flows for the right valuation 9 Market Analysis Customer Due Diligence Acquisition Search Portfolio Company Support Find companies to acquire Support the strategic initiatives of portfolio companies Strategic Acquisition Services: Buy-Side Search Internal Diagnostic External Analysis Growth Opportunities “Where are we now?” • Differentiators • Strengths & Challenges • Long-term Goals • Customer Perceptions • Market Dynamics • Competitive Landscape • New Customers • New Services • Positioning for long-term goals Gap Analysis Opportunity Analysis Criteria Development for an Acquisition Refined Market Analysis Search – Target Identification Introduction to Client 10 Value Proposition of Strategic Analysis Strategic initiatives in any market segment are best served by replacing “intuition” with initiative-driven strategic analysis. The method for conducting strategic analysis should be repeatable, regardless of the strategic initiative. Strategic analysis is most valuable when it is structured and methodical. Engagement configuration should always take into consideration the proper insight from competitors, customers, and other market sources. Independence of the engagement analysis is critical. 11 Typical Client Questions & Challenges • • • • • • • • • • 12 What are the competitive dynamics of our market in terms of growth, market size, industry trends, etc? How might we be perceived in the marketplace from both a competitive and customer perspective? How do we benchmark the operations of the “best in class”? What should our organization look like in regard to key success factors, market position, messaging, etc? Who are our customers? How do we position our products within the marketplace? What is happening with our potential future customer base? What is the market opportunity at present and in the future? What new markets are emerging that we might be able to access? What gaps exist in our current product offerings, geographic presence, etc.? Our Process – Insight Development • 13 Initiate contact with target organizations – Knowledgeable sources: competitors, customers, partners, distributors, government officials and agencies, industry / financial analysts, etc. – Protect client anonymity / confidentiality – Disclose our identity – Respect confidentiality – No financial / material enticement or coercion – Discussion rather than survey – Multiple contacts typically made within each organization nxtMOVE is a boutique strategy consulting firm based in Reston, VA Firm Background • • • • • • 14 Founded in 1982 Unbiased third party advice and insight Global capabilities: language and proven track record in multiple industries in the global arena Understanding of U.S. and global markets and industries Interactive, flexible process Industry expertise and practice areas Client Base • • • Diverse client base ranging from global industry leaders to private equity groups We typically support executive decisionmakers in strategy, marketing and development / innovation Strong focus in: – Financial Services – Consumer Products – Industrial / Manufacturing – Health Sciences (Pharma, Biotech and Medical Devices) – Private Equity – Other Industries Industry Focus nxtMOVE has developed industry practices to better serve the needs of our clients Industrial/ Manufacturing Financial Services Credit Card Companies Heavy Equipment Manufacturers Insurance Companies Building Products Companies Investment Banks Private Equity Groups 15 Financial Information Providers Consumer Products Paper Products Gift Companies Confectionary Companies Automation & Control Companies Homeware Companies Chemical Companies Tool companies Aerospace and Automotive Companies Health Sciences Telecoms & Technology Computer Companies Wireless Carriers Information Systems Providers Medical Products Pharmaceutical Companies Medical Insurance Companies