Win/Fail: Industry Examples

Win/Fail Industry Example #1

California Commercial Healthcare Market

(% volume changing suppliers)

Explanation: The slight majority of Volatile volume in this industry is due to a
failure on the part of the incumbent supplier. The other 47% of Volatile volume moved because a supplier
won by doing something that more than half of the other suppliers in the industry either would not, or could not, do.

Win/Fail Industry Example #2

CAUSE OF VOLATILITY

Coated Paper Market

(% volume changing suppliers)

Explanation: The overwhelming majority of Volatility in this industry is caused by the
failure of an incumbent supplier. This industry has two sources of failure. The first source is involuntary, the 65% of Volatility caused by outright failure. There is in this industry, however, another 32% of "voluntary" Volatility as industry suppliers Restructure their relationships with their customers. This Restructuring accounted for another 32% of "failure" led Volatility. These suppliers raised their prices, or refused to supply volume to selected customers in their Restructuring. These customers, of course, saw that as a failure on the part of their incumbent suppliers and changed their suppliers. The final 3% of industry Volatility was due to a
win where one supplier did something for a customer that more than half of the other suppliers either would not, or could not, do.

Win/Fail Industry Example #3

CAUSE OF VOLATILITY

Commercial Printing Market

(% volume changing suppliers)

Explanation: The Commercial Printing market, during this period of time, was split in the causes of its Volatility. Fifty percent (50%) of the industry's Volatility, that is where customers change from one supplier to another, was due to a
win. A win occurs when a supplier offers a customer something more than half of the other suppliers in the marketplace either cannot, or will not, offer. Thirty seven percent (37%) of the Volatility in the industry was due to an involuntary
failure on the part of an incumbent supplier. Thirteen percent (13%) of the industry's Volatility is due to a failure as suppliers Restructured their relationships with their customers. The industry, during this period of time, was a Reprieve market. The industry's suppliers took advantage of this market to raise prices and withdraw supply from some of their less attractive customers. These customers, naturally, saw these moves as failures on the part of their incumbent suppliers and they changed their supply relationships as a result.

Win/Fail Industry Example #4

CAUSE OF VOLATILITY

Less-Than-Truckload Market

(% volume changing suppliers)

Explanation: The Less-Than-Truckload trucking market was largely a
failure market. Most Volatility was caused by an incumbent supplier failing its customers. Twenty-eight percent (28%) of overall Volatility was due to
wins by a supplier. A supplier wins when it offers a customer something more than half of the industry's suppliers could not, or would not, offer that customer.

Win/Fail Industry Example #5

CAUSE OF VOLATILITY

Truck Manufacturing Market

(% volume changing suppliers)

Explanation: This industry was a
fail market during this period of time. Seventy seven percent (77%) of industry Volatility was industry could offer. The other 23% of Volatility resulted from a
win, where one supplier offered a customer something that less than half of the industry competitors could, or would, offer that customer.