This plan assesses the market, company core competencies, technology roadmaps, and financial proposition today, predicts what may occur over the next five years, and points out the key actions necessary over that period to realize success.  The elements of the plan with important questions answered by each element are:

 

Market Data

·  Environment – What are the market conditions for the customers in the segments under consideration?  Covers such areas as customer consolidation/M&A activities, pricing and cost for customer products, and relevant governmental impact. 

· Trends – What are the prevailing patterns of change occurring in the market for consumers and/or suppliers?

· Market drivers - What are the major influencers in the market causing the trends or promising (threatening) new ones for consumers and/or suppliers?

· Application drivers – For the major application areas of interest, what are the factors influencing application choices for consumers and/or suppliers?  The application drivers should be tied to the market drivers.

· TAM/SAM – What is the size of the Total Available Market (TAM) and the Sellable Available Market (SAM)?  SAM incorporates the capabilities of the company to manufacture products and reach customers.

· Growth – What is the growth rate of the various segments under consideration?

· Segmentation – What are the classes for customers and the differentiation of their needs?

· Competitors – Who are the competitors and what are their strengths and weaknesses?  What are the likely actions for the company to take to maintain a long lasting competitive edge?

· Share – What is the market share for the customers, and for the competition at each of the customers?

· Barriers to entry – What are the factors preventing a new supplier from entering the market?

Company strategy

· Vision/strategic summary – In simple terms, what is the purpose and direction of the company? 

· Company portfolio play – How can all the products and services the company supplies and/or has capability to supply be used to forge a competitive advantage in the market?

· Market adoption – Where are the major customers on the technology adoption cycle?  Given this, which customers should be initially targeted for the product or service? In terms of a “Whole Product Model,” how can the company package the product with additional service and product features to move from a generic product with little added value to a potential product which differentiates the product and the company?

· Make/Buy – What aspects of the product should the company manufactured and which should be purchased outside?

· A&M – What opportunities are there to acquire or to merge with other companies to gain a better strategic position in the market?

· Cost – Compared to the competition, where is the company positioned with respect to cost of product, overhead, and investment?

· Resource model – What is the make-up of the team required to define, develop, and launch a product?  What is the output capability (# products per year) for this team?  What is the cost of the team?

· Customers – Who are the major customers for the company today?  What is the TAM/SAM for each?  What is the company share position?  How do they factor into the strategy?

Marketing Strategy

· Segmentation — Who are the customers, what are their needs

· Four P’s — product, position, pricing, promotions

· Channel strategy — Direct, rep, distribution, compensation plans, promotions to the channel, training

· Competitive strategy — Value proposition, unique selling points, strengths and weaknesses

· Key metrics — Sales, share, margin, budget

Technical Strategy/requirements

· Roadmaps – What products over time are necessary to meet the strategic objectives?  The products should be tied to the application drivers.  What manufacturing processes and technologies are needed over time to make the products? 

· Qualification levels – Given the reliability requirements of the market, what are the necessary product qualification tests and steps to assure the product meets the reliability requirements?

· Development Cycle Time – How does the development process vary given product families?  What is the cycle time for each?

· Risk Analysis – What are the threats to success?  What are the weighted priorities of each?  What actions must be taken to mitigate the major risks (who, what, when)?

Manufacturing Strategy

· Key resources and acquisition strategy — Raw materials, personnel, equipment

· Key processes — Present state, process development needs

· Outsourcing plans — Present and future

· Facilities — Present and future needs, cost, depreciation

Financial

· Revenue model and assumptions – What is the revenue over time, by major customer and total company?  What are the assumptions made to achieve this revenue?

· Stretch revenue model and assumptions – What maximum revenue can be realized and what has to occur to meet these maximum numbers?

· Customer penetration/share over time – By customer, what is the share over time and what has to occur to meet these share goals?

· Market Share – What is the aggregate market share for the company over time?

· ASP model – How does the price change over time? 

· P&L Statement – What is the complete profit and loss for the business segment under consideration?