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CU7112497ECA 3 C’s 3 C’s 3 Cs 3 C’s 3 C’s 3 C’s 3 C’s 3 C’s 3 C’s 3 Cs 3 Cs 3 Cs 3 Cs 3 Cs 3 Cs * BOS Copyright? 1998 Bain Company, Inc. Agenda Next Slide Copyright? 1998 Bain Company, Inc. CU7030298IMB Author: Laird Reed Reviewers: Scott Wells,  Karen Hellmich bc 3C’s March 1998 Copyright? 1998 Bain Company, Inc. The 3C’s framework Tools and strategic questions answered Takeaway slides Agenda Agenda The 3C’s framework Tools and strategic questions answered Takeaway slides Strategic Purpose: To determine a company’s strategic cost position relative to competitors To identify cost reduction opportunities To identify revenue and profit maximizing strategies To achieve differentiation and preempt competitor moves To determine the strategies that fit best with a company’s core competencies Costs Customers Competitors Capabilities The 3 C’s is one of the core tools used to determine the most leveraged strategy for a business. The fourth, often neglected, “C” Framework Agenda The 3C’s framework Tools and strategic questions answered Takeaway slides Costs Cost-Related Bain Tools Strategic Questions Answered Costs Customers Competitors Capabilities 1. Relative Cost Position 1. How do our costs compare to competitors’ costs by product/service/business? What is our full potential cost position? 2. Experience Curve 2. To what extent is the company using its accumulated experience to drive down unit costs? 3. Cost Sharing Analysis 3. Are there any opportunities to share costs within the company? What are the potential savings from cost sharing? 4. Best Demonstrated Practice 4. What are the best internal and external practices? To what extent are they transferable? What will be the impact of implementing them more broadly? 5. Value Chain Analysis 5. How can we optimize at each step in the value chain? What are the cost drivers at each step? 6. Profit Hunt 6. What are the quick hit operating improvements? W