casing framework

Framework

hypothesis
look at 3 areas: LIST
within Area 1, 3 components: LIST
expand on each component

within Area 2…

Profitability Framework

will be improved by increasing revenue or decreasing costs
revenue, costs, market

Market Entry/Growth/Expansion Framework

should enter given sufficient market demand
market, profitability, strategic alignment

Investment/Acquisition Framework

should invest given it creates revenue or cost synergies
profitability, return on investment, strategic alignment

profitability bucket

1 revenue: within each product segments
- price (WTP)
- volume (retention, marketing)

2 costs
- variable (COGS, wages, packaging)
- fixed (rent, salaries, insurance, depreciation)

3 net profit
- vs other product streams
- either improve, cut, introduce new

investment bucket

1 Valuation of Investment
- PV: discount rate
- EV: ebitda multiples or share price

2 If the investment$ is worth it
- ROI vs Hurdle
- NPV vs 0

strategic alignment bucket

1 benefits
- access to market/tech
- operational efficiency = save time/effort

2 risks
- capex available?
- customer adoption, competitive response
- misalignment in culture/systems/brand/industry standards/legal

market bucket

1 market size and industry growth

2 customer segmentation and trends

3 competitors
- share/fragmented or consolidated
- differentiation/value prop (pricing, quality)