Comparative Industry Analysis

We've lost the art of good old-fashioned competitiveness. 𝙈𝙤𝙨𝙩 𝙛𝙤𝙪𝙣𝙙𝙚𝙧𝙨 𝙚𝙞𝙩𝙝𝙚𝙧: Ignore competitors completely ('We're so unique, we have no competition') Obsess over direct competitors ('Let's copy what they're doing') Both approaches miss the real opportunity. The competitive analysis framework that transformed my last company: Instead of just watching our direct competitors, I challenged my team to identify world-class leaders in specific categories and learn from their principles. 𝗘𝘅𝗮𝗺𝗽𝗹𝗲𝘀: - 𝙂𝙖𝙥 for e-commerce website experience - 𝙉𝙤𝙧𝙙𝙨𝙩𝙧𝙤𝙢 for customer service excellence - 𝘼𝙥𝙥𝙡𝙚 for product simplicity and user experience 𝗧𝗵𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻: 'How can we apply their world-class principles to our business?' Why this works better than traditional competitive analysis: You learn from proven excellence, not just industry mediocrity You discover innovations from outside your sector 𝗧𝗵𝗲 𝗔𝗜 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗻𝗼𝗯𝗼𝗱𝘆'𝘀 𝘂𝘀𝗶𝗻𝗴: Here are 5 AI prompts for competitive analysis: 𝗣𝗿𝗼𝗺𝗽𝘁 𝟭: 𝗖𝗿𝗼𝘀𝘀-𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 𝗗𝗶𝘀𝗰𝗼𝘃𝗲𝗿𝘆 'Identify the top 3 companies known for [specific capability like customer onboarding, pricing strategy, or user interface design]. Analyze what makes them world-class in this area and suggest how a [your industry] company could adapt these principles.' 𝗣𝗿𝗼𝗺𝗽𝘁 𝟮: 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝗘𝘅𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 'Study [world-class company]'s approach to [specific function]. Break down their strategy into 5 core principles that could be applied to any business. Provide specific examples of how each principle works.' 𝗣𝗿𝗼𝗺𝗽𝘁 𝟯: 𝗚𝗮𝗽 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 'Compare our current [process/strategy] to how [world-class benchmark] handles the same function. Identify the 3 biggest gaps and suggest specific improvements we could implement in the next 90 days.' 𝗣𝗿𝗼𝗺𝗽𝘁 𝟰: 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 '[World-class company] excels at [specific capability]. How could a company in [your industry] adapt their approach to achieve similar results? What would need to be modified for our context?' 𝗣𝗿𝗼𝗺𝗽𝘁 𝟱: 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗦𝘆𝗻𝘁𝗵𝗲𝘀𝗶𝘀 'Analyze the competitive strategies of [3 world-class companies from different industries]. What common patterns emerge in how they maintain market leadership? How could these patterns apply to our competitive strategy?' 𝗧𝗵𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲: While your competitors are copying each other, you're learning from the best in the world. What world-class company could you learn from that's completely outside your industry?"

I boiled 100+ acquisitions and 500 client engagements into a few simple frameworks for starting your search. Your industry will make or break your life for the next several decades. And if you buy in the wrong one, the business might just eat you alive. Warren Buffett once said, "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact". And worse yet, you probably haven't proven your brilliance yet lol I use this 4 step process to analyze industries with my clients: 1. Industry Revenue Matrix 2. Industry Production Matrix 3. Hard Filters (deal killers) 4. Thesis Buildout (how you’ll create value) Here's how to use each one 1. Industry Revenue Matrix Customer type and Service vs. Product Focus These variables change as you change the quadrant: Customer Acquisition Strategy: Depending on who your customer is and what they're buying, the method for how you find them will change. Talent Recruitment: Depending on whether you are tethered locally or free to hire anywhere, your recruitment process will vary dramatically. Offer positioning: Every industry presents opportunities for niches, but some are more valuable than others. In general... I like these characteristics the most (more on why later): 1. Skilled labor over unskilled 2. Local over global 3. B2B over B2C 4. Services over Products 3. Hard Filters: Avoid A) Operating leverage: High fixed costs in proportion to variable costs is a major risk for a debt fueled acquisition. Examples of companies with large operating leverage: restaurants & gyms. Big fixed rent, utilities, and payroll. Small ticket items with tiny variable costs and slivers of profit per sale. B) Operating Complexity: Watch your revenue per employee. As rev per employee trends down, its a signal that more coordination, hiring, training, and firing, is required. C) CapEx: don't forget the balance sheet.. businesses that need equipment maintenance and replacements are brutal for leveraged acquisitions. It'll eat up whats left of your free cash. D) Cost-focused auction markets: some industries have bidding processes where you are filling in your customers application form... if you're acquisition target has a whole estimating team to submit bids just to keep revenue steady, avoid. E) Cyclicality & seasonality: Cyclicality = major no no for debt based buys. Seasonality can be planned for. but plan well. Step 4: Thesis build out Use these frameworks to think about value add acquisition concepts: Industry-level theses to think about: • Apply tech/automation • Apply AI • Use global talent • New delivery structure • New talent injections • New customer acquisition engine Deal-specific theses to model: • Pricing • Cross-sell / upsell paths • Working capital unlocks • Overhead reduction (rare—assume less than you hope) Just make sure you know your industry well before you assume you can make these changes.

articleoftheday# 𝗖𝗼𝗺𝗽𝗮𝗿𝗮𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗼𝗳 𝗔𝗶𝗿𝗰𝗿𝗮𝗳𝘁 𝗠𝗼𝗱𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀: 𝗘𝗔𝗦𝗔, 𝗙𝗔𝗔, 𝗮𝗻𝗱 𝗗𝗚𝗖𝗔 𝗜𝗻𝗱𝗼𝗻𝗲𝘀𝗶𝗮 This study conducts a comparative analysis of aircraft modification certification processes within the aviation regulatory frameworks of the Federal Aviation Administration (FAA), the European Union Aviation Safety Agency (EASA), and the Directorate General of Civil Aviation (DGCA) in Indonesia. Using the 𝗧𝗖𝗔𝗦 𝟳.𝟭 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝗺𝗼𝗱𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗲 𝗔𝟯𝟮𝟬-𝟮𝟬𝟬 𝗮𝘀 𝗮 𝗰𝗮𝘀𝗲 𝘀𝘁𝘂𝗱𝘆, the research explores Design Organization Approval (DOA) or Organization Designation Authorization (ODA) procedures. The findings reveal variations in Design Organization structures and certification processes, offering valuable insights into Indonesia’s emerging aviation market. By adapting best practices from the FAA and EASA, the study aimed to contribute to the enhancement of Indonesia’s regulatory system, benefiting policymakers, regulators, and industry stakeholders

𝐁𝐞𝐬𝐭 𝐀𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐓𝐞𝐜𝐡𝐧𝐢𝐪𝐮𝐞𝐬 (𝐁𝐀𝐓) 𝐟𝐨𝐫 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐥𝐢𝐧𝐠 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥 𝐏𝐨𝐥𝐥𝐮𝐭𝐢𝐨𝐧 - 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐲 𝟕: 𝐂𝐫𝐨𝐬𝐬 𝐂𝐨𝐮𝐧𝐭𝐫𝐲 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐨𝐟 𝐬𝐞𝐥𝐞𝐜𝐭𝐞𝐝 𝐁𝐑𝐄𝐅𝐬 𝐟𝐨𝐫 𝐈𝐫𝐨𝐧-𝐒𝐭𝐞𝐞𝐥, 𝐏𝐚𝐩𝐞𝐫-𝐏𝐮𝐥𝐩 𝐚𝐧𝐝 𝐖𝐚𝐬𝐭𝐞 𝐢𝐧𝐜𝐢𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐬𝐞𝐜𝐭𝐨𝐫𝐬 by OECD - OCDE Industrial #facilities have a significant impact on the #environment due to their use of large amounts of #rawmaterials and #energy, resulting in the release of #pollutants into the #air, #water and #soil. These facilities are obligated to adhere to various #regulatory #requirements, including #emissionlevels and #environmental #quality objectives at the local level. This #report provides a cross-country analysis of Best Available Techniques Reference Documents (#BREFs) for three #industrialsectors: #iron and #steel, #paper and #pulp, and #wasteincineration. It examines six BREFs from different #countries and #organisations, such as #China, #India, #SouthKorea, the #US, the #EU, and the #WorldBank. The #information gathered from various #jurisdictions may help and support countries in developing sector-specific BREFs. Furthermore, this comparative #analysis can identify areas for potential #harmonisation between countries and highlight aspects of the BREFs that may require #expansion or #updating to better address #environmentalimpact considerations. This report is an output of the OECD Environment Directorate. It was prepared under the supervision of the OECD's #ExpertGroup on #BAT and is published under the responsibility of the #OECD's Chemicals and Biotechnology Committee (#CBC). This report was prepared by Berrak Eryasa and @Naoko MORITANI (#OECDSecretariat).