Understanding the Profit Pool - SNAP chart - A Map of the Profit Pool

5 important questions on Understanding the Profit Pool - SNAP chart - A Map of the Profit Pool

What is a useful tool to see where you stand, a an organisation as compared to your competitors, in the profit pool?

A Map of the Profit Pool

What will the Map of the Profit Pool show you?

You can make one for channels, products or sequential value-chain activities in the market and the total profits available from them.

How can you see how you are positioned in the Map of the Profit Pool? And what will this indicate?

You can locate your business and its competitors on the map, which shows how much each company takes from each part of the profit pool.
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Besides the fact that CEOs and general managers need to assess how much of their industry's profit pools their firms own today, what else should they take into consideration?

They should anticipate profit-pool shifts, see how profit pools are likely to change in the future and what opportunities or threats these shifts may create.

How is the Pareto Principle important for reading the Map of the Profit Pool?

That 20% of the products can mount to 80% of the profits. So comparing the share of goods sold and share of profits to determine which products are good and which can be replaced.

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