贝恩-战略分析方法-分析方法-rosrms2014.ppt

1、 Author:Gisele Garraway ROS/RMS March 1998 ROS/RMS BOS 2 Agenda ROS/RMS overview Applications ROS/RMS steps Client examples wireless infrastructure drug retailing Challenges Key takeaways ROS/RMS BOS 3 Agenda ROS/RMS overview Applications ROS/RMS steps Client examples wireless infrastructure drug re

2、tailing Challenges Key takeaways ROS/RMS BOS 4 ROS/RMS Graph ROS/RMS is a diagnostic tool used to compare a business units actual profitability to its potential profitability.0%5%10%15%20%25%30%0.1 0.2 0.5 1 2 5 Dunster Eliot Currier Cabot Profitability$150MM Revenue Normative band(Predicted potenti

3、al profitability)Relative Market Share ROS/RMS BOS 5 ROS/RMS Components What is measured:How it is measured?Scale:There are three main components of an ROS/RMS graph:profitability,relative market share and the normative band.*This tool is typically called ROS/RMS since ROS is the most common profita

4、bility measure used*Allows for easy viewing of a doubling in relative market share Profitability (y-axis)Current profitability return on capital employed return on equity return on assets return on sales*Linear RMS (x-axis)Accumulated experience and strategic position Relative market share(RMS)Logar

5、ithmic*Normative band Range of predicted profitability Plus and minus one standard deviation from regression line-ROS/RMS BOS 6 ROS/RMS Relationship Companies with higher relative market share tend to have more accumulated experience.Higher accumulated experience gives the potential for lower costs

6、and higher profitability.Higher accumulated experience is positively correlated with RMS Higher accumulated experience provides an opportunity for lower costs and higher profits RMS is a proxy for accumulated experience.RMS is positively correlated with profitability Accumulated Experience RMS RMS P

7、rofitability Accumulated Experience Cost per unit ROS/RMS BOS 7 Importance of Market Share Source:PIMS(Data from 1970 to the present of 3,200 businesses-66%manufacturing,20%consumer businesses,14%services)Under 10%10-20%20-30%30-40%Over 40%9.0%14.0%18.0%23.0%29.0%0%5%10%15%20%25%30%Pre-tax Return on

8、 InvestmentMarket Share Using relative market share as a predictor of profitability is supported by empirical evidence.The PIMS database demonstrates that,on average,across industries,companies with greater market share have higher profitability.ROS/RMS BOS 8 Agenda ROS/RMS overview Applications ROS

9、/RMS steps Client examples wireless infrastructure drug retailing Challenges Key takeaways ROS/RMS BOS 9 Applications Bain has used ROS/RMS effectively for many clients.Examples of Bain work are:Computers&Office Equipment Electric&Power Equipment Situation:Result:A major PC manufacturer recently suf

10、fered significant operating losses and was experiencing severe cash flow problems An electric&power equipment company was evaluating a manufacturer of discrete semiconductors for purchase.The client was concerned about industry cyclicality and whether the targets profit margins were unsustainably hi

11、gh Bain used ROS/RMS analysis to examine the PC industry and found that moving the client into the normative band through operational improvements would result in a$174MM profit before tax improvement RMS/ROS analysis revealed that the targets margins reflected its market share position and accumula

12、ted experience and were therefore sustainable;the targets high RMS helped drive EBIT margins in excess of 20%ROS/RMS BOS 10 Agenda ROS/RMS overview Applications ROS/RMS steps Client examples wireless infrastructure drug retailing Challenges Key takeaways ROS/RMS BOS 11 ROS/RMS Steps There are five b

13、asic steps involved in ROS/RMS analysis:Define the business Calculate profitability Calculate relative market shares Draw normative band Determine action implications Key Success Factors Determine the economic boundaries of the business Identify relevant competitors Achieve comparability across comp

14、etitors Include any shared experience If business is local or regional,weight market shares Calculate the normative band using regression analysis Determine if strategic or operational improvements are required ROS/RMS BOS 12 ROS/RMS Steps Define the business Calculate profitability Calculate relati

15、ve market shares Draw normative band Determine action implications Determine the economic boundaries of the business Identify relevant competitors Key Success Factors ROS/RMS BOS 13 Defining the Business Effective ROS/RMS analysis depends on correctly defining the economic boundaries of a business.C

16、ost sharing and customer sharing are the primary determinants of business definition.High Cost sharing Low Low High Customer sharing One business (charge cards and credit cards)One business with potential for differentiation or niche position(Cross pens and BIC pens)Separate business with potential for cost leadership (oil and refinery by-products)Separate businesses(beer and distilled spirits)Separate businesses with potential for bundling(touring quality microphones and speakers)One business w