Competitiveness

Competitiveness Must be Defined as Superior Returns Relative to Your Competition and Validated Through the Eyes of Your Customer

Many executives assume that revenue growth has a positive impact on company value and as a result, topline growth has been the most important goal for Management in several industries during the last 25 years. Companies are now facing the unavoidable imperative: "to increase profitability" due to shareholder/board emphasis on “P&L leverage".

Business leaders have now identified the need for a deep understanding of competitiveness because:

  1. EBITDA performance is difficult to attain solely through sales growth
  2. Increasing pricing pressures from competitors are reducing margins  
  3. Higher volatility in raw material costs are amplifying performance variation
  4. Limited access to credit / capital to sustain long-term growth investments demand stronger net income

The Thinking Dimensions competiveness programs enable and support organizational management teams solving fundamental profitability issues through answering the questions needed to make decisions including:

  • How should we define profitability within the company and how should we measure it?
  • What is the real profitability per each product (type) we offer: How is it changing and why?
  • How can we adjust the product mix to maximize profitability?
  • Which major levers will determine the (current) future company profitability?
  • At what extent can we use price levers to increase profitability? How and where (channels)?
  • How are new market trends and changes affecting profit / EBIDTA? How can we exploit or mitigate them?
  • What quick-win decisions can be immediately implemented and have impact on our bottom-line?


TD has installed profitability programs to address management needs in automotive, industrial equipment, life sciences, engineered products and project business industries. 

Please contact us to arrange a discussion with Thinking Dimensions on this subject matter.


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