Bain’s Profit from the Core approach provided the foundation for identifying the ways in which ClothingCo could bring its brand to full potential.
Profit from the Core stipulates that the core of a business is the cornerstone of its strategy. The core is what makes a company unique and is also the real root cause of competitive advantage. Misunderstanding, underestimating or abandoning the core limits a company's ability to achieve full potential.
In ClothingCo's case, achieving full potential with its strong brand required a new strategic vision that built off of this core asset and an understanding of the company's most profitable labels, products and sales channels: to deliver high quality, affordable fashion products to middle class consumers.
To make this vision a reality, the teams joined together and identified the necessary capabilities:
- Supply chain and logistics: Use flexible sourcing to make the process more efficient
- Production and operations: Adjust the manufacturing platform to take advantage of differentiated competitive cost positions
- Go-to-market: Multi-channel distribution with stores, franchises and wholesalers
- Brand: Reposition to expand market
- Portfolio: Expand into additional apparel categories beyond basic products