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Page 3 of 7 Segment Manager
Segment Managers are strategists. Their job is to answer these questions:
• Will new products enter or leave the segment this year?
• Is there too much production capacity in the segment (could lead to price competition)?
• Is there too little production capacity in the segment (could lead to a margin opportunity)?
• How does the company's distribution system ("Accessibility" on the R&D spreadsheet) compare with competitors?
• What is the margin potential of this segment?
• What should be done to gain competitive advantage for the segment?
• What will competitors do next year in this segment? In two years?
Segment Managers have more freedom than Product Managers to make strategy and policy recommendations. For example, if they observe a capacity shortage developing, a Product Manager will request more capacity, but a Segment Manager might recommend bringing in a second product to serve the segment. A Product Manager would never suggest "killing" their product, but a Segment Manager might conclude that the segment should be abandoned. The Segment Manager might then recommend:
• A rapid retreat from the segment;
• A phased withdrawal the segment; or
• A hedging strategy where most of the assets are recovered, but the product is kept in the segment as a contingency.
Segment Managers present recommendations to a panel ( teammates) that sets overall company strategy.
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