Questions and Answers
When should we change an opportunity to a market segment?
While there is no hard and fast rule as to when a new opportunity should be reclassified as a market segment, there are a number of points to consider that should provide guidance. Any of your core segments should represent businesses that you are actively involved in, should have strategic significance and should have an established revenue stream. At the point at which your opportunity fits these criteria, you could consider it as a core segment. You should also be able to address all of the questions on the Market Segment Analyses (pages 1.1, 4.1 and 4.2 in the Simplified Strategic Planning Manual) which require you to determine the market share you've gained, as well as the future market and competitive assumptions for the segment. These last sheets have questions that allow you to determine the future attractiveness of the segment, as well as your perceived future competitive position. As a market segment, this former opportunity will have to compete for resources with all of your other core segments. Conducting a Strategic Assessment (page 5.1) will allow you to see how all of the segments fit together.
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