Where Value Hides: A New Way to Uncover Profitable Growth for Your Business

by Stuart E. Jackson

Book Overview

Where Value Hides introduces the Strategic Market Positioning theory, which accurately reveals a company's true health based on factors like market share. SMP helps your business define its markets,... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0470009209
• ISBN13: 9780470009208
• Release Date: October 2006
• Publisher: Wiley
• Length: 288 Pages
• Weight: 1.10 lbs.
• Dimensions: 1.0" x 6.3" x 9.2"

Customer Reviews

SMP as a Guide to Acquisition Potential

Acquisitions are a tricky business. Deciding whether to move forward on one, or to pass one by, too often depends on an opaque understanding of strategic fit and growth potential. I found Stuart Jackson's discussion of how Strategic Market Position can create a clearer picture informative and practical. Jackson states that, "for a business or product line that competes in only one strategic segment, SMP is simply the market share of the business in its strategic market segment. For a company competing in multiple strategic segments, its overall SMP is the average of its SMPs in each strategic segment, weighted by the businessâ(tm)s sales or investment in each strategic segment." Pretty straightforward; but when you read the case examples in the book and learn what it takes to dissect a company's value drivers, you quickly realize this is no simple task. When considering acquiring another company, though, the upside to doing this legwork can be tremendous. Jackson says we should ask four key questions when analyzing an acquisition target: 1) What strategic segment are we entering and who is the competition? 2) Will the new business improve our SMP in segments where we already compete? 3) If we are entering a new strategic segment, can we leverage our SMP in adjacent segments to ensure we achieve a strong SMP in the target segment? 4) Bottom line, will the new business make the weighted average SMP for our overall company better or worse? Answering these questions can help you know, for example, what types of acquisitions make sense long-term, if you should "overpay" for an acquisition, as well as know when it is wise to sell off or merge a business. I think Jackson's Where Value Hides does a good job of outlining the steps necessary to get to the heart of these questions and make better decisions.

A Practical Business Book

Honestly enjoyed this book and find it provides useful insight into better understanding what drives value and how to make decisions that uncover and create it. Probably one of the more practical strategy books out there and worth the time it takes to learn its lessons.

Not market segmentation

Don't confuse Strategic Market Position (SMP) with your run-of-the-mill market segmentation everyone talks about. The concept of SMP that Stuart Jackson lays out in his book, Where Value Hides, doesn't so much turn the concept of market share on its head as show how positioning your company based on a simplistic understanding of market share can lead to strategic decisions that are dead wrong and can ultimately be very costly. The importance of getting a handle on your company's market position becomes clear when you realize that its impact goes far beyond sales and marketing straight to the heart of your organization's operations, cost structure and overall strategy. SMP is not about market segmentation, although it has very real implications for your sales and marketing organization. Rather, as the title implies, it's about uncovering what creates value for your company and turning that insight into clear strategic decision criteria. Simple on the surface, but so rarely implemented in reality.

Poweful framework for better understanding what drives value and how to make decisions that uncover

As a former manager at one of the companies analyzed in the book, I found Stuart Jackson's, Where Value Hides, entertaining and in many ways illustrative of best practices when it comes to thinking about how to go about analyzing a company's strategic options. SMP is a powerful and useful tool for analyzing and understanding portfolio growth strategies. Written in a style which is easy to comprehend, Jackson has made a significant contribution in the areas of strategic analysis and corporate portfolio management. A must read for both students and practitioners of business strategy.

Why bigger may be worse

Where Value Hides is a fresh read on a topic much discussed but rarely understood in its finer points: market share and its impact on value creation. All company leaders strive for greater market share, but are they asking the question, Will higher share really benefit the organization in the long run? Judging from the examples Jackson sites, I would say that far too few do in fact ask this question and fewer still answer it with any degree of analysis and strategic clarity. Greater market share may, in fact, produce poorer results than less market share, according to the book. This is counterintuitive until you understand what type of market share actually drives your business versus what you think - or hope - drives it. Is it national market share? Share of region? Share of channel? Or maybe share across or within a product offering? Until you understand the answer to this question and come to grips with the implications, you're probably flying blind. Jackson does a good job of illustrating the deeper meaning of market share, its key drivers, and how business leaders can use this knowledge to strategically position their companies for long-term success.