Profitability

For each product

Revenue

r

Effectivly the same as Revenue Growth framework.

Product - Identify Segments

Size

Profits

Growth

Share

Revenues for all segments

Price

Pricing power

Consumer price sensitivity

Product differentiation

Market forces

Volumes

Competitor

New Products

Substitutes

Consumer

Growth/Shrinkage of size

Shifting of segments

Brand Strength

Promotion

Distribution

Logistics/Supply chain

Services - time

Costs

Layout the entire value chain of the product or the service

Suppliers

Manufacturing

Distribution

Customer acquisition

Customer retention

Outline all the relevant cost heads and draw up a matrix with value chain activities

Variable

Direct labour

Direct Material

Distribution

Fixed

Indirect material

Indirect labour

Maintenance & Overheads

SG&A

Identify relative contribution to overall Revenue, Cost and hence Profits

Based on the above analysis see if product mix needs to be changed

If product Mix is to be mentained see if for each product

Revenue can be increased

Cost can be decreased