THE PATH FORWARD
BUILDING THE BRIDGE OVER
TROUBLED WATERS
WHAT’S WRONG WITH THE OLD
BRIDGE ?
DECREASING TRAFFIC
POTHOLES
ROADKILL
ROAD RAGE
SOFT SHOULDERS
PwC’s TOP 100 COMPANIES
Year
2002
Sales
U$ b
300.7 302.2 308.2 289.4 273.1 277.0 284.3
Net
Inc.
U$ b
2001
2000
1999
1998
1997
1996
3.1
6.3
15.2
11.6
6.5
4.0
10.0
%
ROE
< 5
6.7
12.0
9.2
5.9
0.7
2.0
%
ROCE
4.1
4.4
6.6
5.4
4.1
3.0
4.8
Top 100 – Results by Area
AREA
#
% Global
Tot.Sales
Sales
U$ b
Net Inc.
U$ b
%NI/S
EUROPE
29
27
80.1
2.0
2.50
USA
28
46
139.2
0.8
0.57
JAPAN
14
12
36.9
-.015
-.04
CANADA
11
6
17.5
0.24
1.37
ROW
18
9
27.0
.025
0.09
TOTAL
100
100
300.7
3.1
1.03
The Path Forward
While building the new bridge and road,
widen the river and throw in a few
“Morningstar” Moat Monsters:
z
z
z
z
Be the low cost producer in the industry
Have high customer switching costs
Own valuable intangible assets such as
patents and trademarks
Become the center of attention and benefit
from the network effect
THE PATH FORWARD
LEAVE THE INDUSTRY
TAKE BIG STEPS
DISCOVER & GET TO KNOW
CONSUMERS
FIND PARTNERS
GO FAST
BUILD !
USING THE NEW BRIDGE
WHO’s ON THE BUS ?
CONTRARIANS
CHAMELEONS
CONSUMERS
PARTNERS
SPEEDSTERS
BUILDERS
LOVERS
CONTRARIANS
Can live and work in a marketing environment
Comfortable “leaving” the traditional industry
Believe Technology Develop. is marketing’s slave
Hate waste of any kind
Love tackling what others try to avoid
Love taking big steps, acceleration & speed
Love product platforms, many & diversified
grades, hybrid products
Love the challenge to do business differently
CHAMELEONS
Are flexible
Can quickly detect and assess changes in their
environment …. and adjust
Don’t like being just one color all the time
THE REST OF THE BUS
CONSUMERS – only way to be marketing driven
PARTNERS – provide knowledge & expertise
SPEEDSTERS – the world won’t wait for us
BUILDERS
z
z
Only builders create sustainable wealth for society
Only builders can (re)capture attention & importance
LOVERS
z
z
z
Are passionate
Care for others more than themselves
Have the necessary seat belts and life preservers for
the journey
WHAT ABOUT US ?
ON WHICH BUS DO WE CHOOSE TO
BE ?
WHAT CAN WE CONTRIBUTE TO
MERIT AN INVITATION TO JOIN ?
CAN WE BE LOUSY MATHEMATICIANS
z
z
Add but never subtract ?
Multiply but never divide ?