Strategy And Competitive Analysis

Strategy & Competitive Analysis

Develops business strategy grounded in competitive and market analysis, using established frameworks (Good Strategy kernel, Porter's 5 Forces, SWOT, Blue Ocean, Playing to Win, Value Chain Analysis, BCG Matrix) and choosing the two or three that fit the question. It produces a diagnosis, a guiding policy and coherent actions with evidence behind each. It does not produce a textbook tour of every framework; a framework that does not sharpen the answer is left out, and the omission is named.

When to Use

• Developing strategy for market entry, a product launch, expansion, M&A, or a turnaround.
• Conducting competitive analysis or profiling specific competitors.
• Making a strategic decision such as build vs buy, pricing, or positioning.
• Planning strategic initiatives for a year or a product line.
• Reverse-engineering where a company competes and how it wins, from public material.
• The user mentions strategy, competitive analysis, Porter's 5 Forces, SWOT, market positioning, or strategic frameworks.

Core approach, the Good Strategy Kernel (Rumelt): Diagnosis (what is the challenge) → Guiding Policy (overall approach) → Coherent Actions (specific coordinated steps).

Example: SaaS startup entering a crowded market → Diagnosis: commoditized features, price competition, high CAC. Guiding Policy: vertical specialization (healthcare) + product-led growth. Coherent Actions: build HIPAA compliance, create compliance templates, offer a free tier, invest in SEO for "healthcare SaaS".

Procedure

Copy this checklist and track your progress:

Strategy & Competitive Analysis Progress:
- [ ] Step 1: Frame strategic question and gather context
- [ ] Step 2: Choose framework(s) based on question type
- [ ] Step 3: Conduct analysis using chosen framework(s)
- [ ] Step 4: Synthesize insights and formulate strategy
- [ ] Step 5: Validate and create action plan

Step 1: Frame the strategic question

Clarify the strategic question, business context (industry, stage, constraints), competitive landscape, and success criteria. If the question is genuinely ambiguous, ask with clarify. See Common Patterns for typical question types.

Step 2: Choose framework(s)

For industry or competitive structure → Porter's 5 Forces. For positioning → Blue Ocean Strategy Canvas or Value Chain Analysis. For overall strategy → Good Strategy kernel. For multiple options → SWOT per option. See Strategic Frameworks Overview and references/methodology.md for selection guidance. Name the frameworks you rejected and why.

Step 3: Conduct the analysis

For a straightforward competitive analysis → use templates/template.md. For complex multi-framework strategy → study references/methodology.md for the integrated approach. Gather evidence with web_search and web_extract (competitor research, market analysis, customer insight), apply the framework systematically, and document findings with sources.

Step 4: Synthesize insights

Apply the Good Strategy kernel: Diagnosis (the core challenge the analysis exposed), Guiding Policy (the overall approach to it), Coherent Actions (3-5 specific coordinated steps). Check coherence: actions reinforce each other, support the guiding policy, and address the diagnosis.

Step 5: Validate and write the action plan

Self-assess against assets/evaluators/rubric_strategy_and_competitive_analysis.json. Check: diagnosis grounded in evidence, guiding policy addresses the root challenge, actions coherent and specific, competitive positioning clear, assumptions explicit, risks identified. Write strategy-and-competitive-analysis.md with write_file: strategy summary, supporting analysis, action plan with owners and timelines.

Strategic Frameworks Overview

Framework Selection:

• Single product launch → Blue Ocean Strategy Canvas + Competitive Profiling
• Market entry decision → Porter's 5 Forces + Playing to Win
• Annual strategic planning → Good Strategy Kernel + SWOT
• Turnaround/crisis → Good Strategy Kernel (diagnosis critical)
• Portfolio management → BCG Matrix + Resource allocation
• Outside-in read of a real company → Playing to Win + Competitive Profiling, with Porter's 5 Forces only where industry structure is the live question

See references/methodology.md for detailed framework application guidance.

Competitive Analysis Overview

Competitor Profiling:

• Identify competitors: Direct (same solution), Indirect (different solution, same job), Potential (adjacent markets, new entrants)
• Profile each: Product/features, Pricing, Target customers, Positioning/messaging, Strengths/weaknesses, Strategy inference, Financial health, Recent moves
• Analyze: SWOT per competitor, Competitive positioning map (2x2: price vs features, etc.), Share of wallet, Win/loss patterns

Porter's 5 Forces:

1. Competitive Rivalry: Number of competitors, market growth rate, differentiation, switching costs, exit barriers
2. Threat of New Entrants: Barriers to entry (capital, technology, brand, regulation, network effects)
3. Threat of Substitutes: Alternative solutions, price-performance trade-offs, switching costs
4. Bargaining Power of Buyers: Concentration, price sensitivity, switching costs, backward integration threat
5. Bargaining Power of Suppliers: Concentration, uniqueness, switching costs, forward integration threat

Output: Industry attractiveness (high/medium/low profit potential), key competitive dynamics, strategic implications.

Competitive Moats (sustainable advantages):

• Network effects: Value increases with more users (platforms, marketplaces)
• Switching costs: High cost to change providers (data lock-in, integration, learning curve)
• Brand: Strong brand recognition and loyalty
• Cost advantages: Scale economies, proprietary technology, favorable access to resources
• Regulatory: Licenses, patents, compliance barriers

Common Patterns

Pattern 1: Market Entry Strategy

• Diagnosis: Assess market using Porter's 5 Forces + competitive profiling
• Guiding Policy: Choose positioning (Blue Ocean or competitive response)
• Coherent Actions: Go-to-market, product roadmap, pricing, partnerships

Pattern 2: Competitive Response

• Diagnosis: Analyze competitor threat (new entrant, feature launch, price cut)
• Guiding Policy: Defend, ignore, or leapfrog
• Coherent Actions: Feature parity, differentiation doubling-down, or new positioning

Pattern 3: Strategic Planning (Annual)

• Diagnosis: Current state SWOT + market trends + competitive landscape
• Guiding Policy: Focus areas (3-5 strategic themes) for next year
• Coherent Actions: OKRs, initiatives, resource allocation

Pattern 4: Differentiation Strategy

• Diagnosis: Competitive positioning map + customer needs analysis
• Guiding Policy: Differentiation axis (vertical, feature set, experience, business model)
• Coherent Actions: Product roadmap, marketing messaging, pricing structure

Guardrails

Evidence-Based:

• Ground diagnosis in data (market research, customer interviews, competitor analysis)
• State assumptions explicitly (market size, growth rate, competitive response)
• Distinguish facts from hypotheses
• Cite sources for key claims

Coherence:

• Actions must reinforce each other (not independent initiatives)
• Actions must support the guiding policy
• Guiding policy must address the diagnosis (not aspirational goals)
• Strategy must be internally consistent (no contradictions)

Realism:

• Acknowledge constraints (resources, capabilities, time, competition)
• Identify risks and mitigation plans
• Avoid wishful thinking ("if we just execute perfectly...")
• Test strategy against competitive response scenarios

Specificity:

• Diagnosis: a specific challenge (not "we need to grow" but "customer acquisition cost exceeds LTV in current market")
• Guiding Policy: a clear approach (not "be customer-focused" but "vertical specialization in healthcare")
• Coherent Actions: concrete steps with owners and timelines (not "improve product" but "build HIPAA compliance by Q2, led by Security Team")

Differentiation:

• Strategy must be defensible against competition
• Identify sustainable competitive advantages (moats)
• Avoid "best practices" that competitors can easily copy
• Explain why this strategy is hard for competitors to replicate

Quick Reference

Inputs Required:

• Strategic question or decision to make
• Business context (industry, stage, goals, constraints)
• Competitive landscape (who the competitors are, market dynamics)
• Available resources and capabilities

Frameworks to Use:

• Industry analysis → Porter's 5 Forces
• Overall strategy → Good Strategy Kernel
• Positioning → Blue Ocean Strategy Canvas, Value Chain Analysis
• Portfolio → BCG Matrix
• Competitor analysis → SWOT, Competitive Profiling

Outputs Produced:

• strategy-and-competitive-analysis.md with:
  • Strategic question and context
  • Analysis (frameworks applied, findings, evidence)
  • Strategy summary (diagnosis, guiding policy, coherent actions)
  • Competitive positioning
  • Action plan (initiatives, owners, timelines, success metrics)
  • Assumptions, risks, mitigations

Bundled files:

• Quick competitive analysis → templates/template.md
• Complex multi-framework strategy → references/methodology.md
• Quality validation → assets/evaluators/rubric_strategy_and_competitive_analysis.json

Verification

• Every claim in the diagnosis points at a source or a stated assumption.
• Each coherent action traces back to the guiding policy, and the policy to the diagnosis.
• "Why is this hard to copy" has a specific answer, not "great user experience".
• The frameworks you did not use are named, with the reason.
• Rubric average is at least 3.5/5 before delivering.