6
The location strategy provides strate
by defining future target markets an
RELEVANCE
AND LEVER
FRAGMENTED FOOTPRINT
Expected increase in M&A
activities and expansion in new
markets lead to a more fragmented
footprint, which is not aligned with
the corporate strategy
COST PRESSURE
Intense cost pressure drives
suppliers to develop new lowcost
patterns in the production
process and optimize the overall
production setup
Evaluation of OWN PRO-
DUCTION AND DISTRI-
BUTION NETWORK based
on customer and market
attractiveness
Review own value chain
to identify cost-saving
potential, including those
based on MAKE-OR-BUY
DECISIONS
LOCATION STRATEGY ANALYSIS
WHICH MARKETS TO BE IN
REVIEW PRODUCT PATTERNS OF CUSTOMERS
Assess customer’s location patterns, volumes
of sale per product, customer segment and their
respective margins
REVIEW MARKET SEGMENTS AND OPPORTUNITIES
Identify growth opportunities within market segments
(preferably for high margin markets) and gauge
competitive landscape
Know which products and services
to offer in which regions
CORPORATE STRATEGY
FOOTPRINT STRATEGY
HOW TO SER
REVIEW PRODUC
Identify value ch
unique selling po
parts that could
Determine CAP
build-up of pro
sourcing produ
Know which
cover interna
Source: goetzpartners; P3