Mattakushi432 Strategy Frameworks
Porter's Five Forces
Assesses industry attractiveness and competitive position.
| Force | Key Questions |
|---|---|
| Threat of new entrants | Capital requirements, switching costs, brand loyalty, regulatory barriers |
| Bargaining power of suppliers | Supplier concentration, switching costs, importance of input |
| Bargaining power of buyers | Buyer concentration, price sensitivity, switching costs |
| Threat of substitutes | Relative price-performance of alternatives, switching costs |
| Competitive rivalry | Number of competitors, industry growth rate, product differentiation |
Output: Rate each force (Low/Medium/High) → determine overall attractiveness → identify strategic moves.
Blue Ocean Strategy
Move from red oceans (fierce competition) to blue oceans (uncontested space).
ERRC Grid (Eliminate-Reduce-Raise-Create)
Eliminate: Which factors the industry takes for granted should be eliminated?
Reduce: Which factors should be reduced well below industry standard?
Raise: Which factors should be raised well above industry standard?
Create: Which factors the industry has never offered should be created?
Four-Action Framework
- Eliminate factors that no longer add value
- Reduce factors over-engineered beyond customer needs
- Raise factors underserved by the industry
- Create new value drivers customers have never been offered
Value Curve
Plot your strategy canvas: x-axis = competitive factors, y-axis = level of offering. A compelling blue ocean has a distinct curve vs. competitors.
BCG Growth-Share Matrix
Portfolio analysis tool for multi-business companies.
High Market Share Low Market Share
High Growth | Stars | Question Marks |
Low Growth | Cash Cows | Dogs |
Stars: Invest to maintain leadership; may become cash cows. Cash Cows: Maximize cash generation; fund other units. Question Marks: Decide invest-or-divest based on strategic fit. Dogs: Divest or harvest unless strategic rationale exists.
Ansoff Matrix
Growth strategy framework.
Existing Products New Products
Existing Markets | Market Penetration | Product Development |
New Markets | Market Development | Diversification |
- Market Penetration: Increase share in existing markets. Lowest risk.
- Market Development: Enter new segments or geographies. Moderate risk.
- Product Development: New products to existing customers. Moderate risk.
- Diversification: New products, new markets. Highest risk; needs clear rationale.
Balanced Scorecard
Translate strategy into operational terms across four perspectives:
1. Financial Perspective
- Revenue growth rate
- Profit margins (gross, EBITDA, net)
- Return on invested capital (ROIC)
- Cash flow generation
2. Customer Perspective
- Market share
- Customer satisfaction (NPS, CSAT)
- Customer retention rate
- Customer lifetime value (LTV)
3. Internal Processes Perspective
- Operational efficiency metrics
- Product development cycle time
- Quality defect rates
- Time-to-market
4. Learning & Growth Perspective
- Employee engagement
- Skills gap closure rate
- Innovation pipeline (new ideas → implemented)
- Technology infrastructure investments
Cascade: Corporate BSC → Business Unit BSC → Team OKRs → Individual goals
SWOT Analysis
Internal | Positive | Negative
| Strengths | Weaknesses
----------------|-----------------|------------------
External | Opportunities | Threats
How to use SWOT strategically (TOWS Matrix):
- SO (Maxi-Maxi): Use strengths to capture opportunities
- WO (Mini-Maxi): Overcome weaknesses by pursuing opportunities
- ST (Maxi-Mini): Use strengths to mitigate threats
- WT (Mini-Mini): Defensive tactics to minimize weaknesses and avoid threats
Strategic Planning Process
Annual Cycle
Q4 (Oct-Dec): Strategic review → Q1 (Jan-Mar): Plan finalization + OKR setting
Q2-Q3: Execution + quarterly business reviews (QBRs)
Q3 (Jul-Sep): Mid-year strategic refresh
Strategic Planning Steps
- Environmental scan — PESTLE + Porter's 5 Forces
- Internal assessment — Core competencies, resource audit
- Strategic options — Generate 3-5 strategic directions
- Strategic choice — Evaluate options; select 1-2
- Strategy articulation — Write the strategic narrative (1-page)
- Cascade — OKRs, resource allocation, roadmaps
- Monitor — Quarterly business reviews (QBRs), strategy checkpoints
Scenario Planning
Used when high uncertainty makes single-path forecasting unreliable.
Steps
- Define the focal question — e.g., "What is our market position in 5 years?"
- Identify driving forces — macro forces affecting the focal question
- Rank by impact × uncertainty — select top 2 critical uncertainties
- Build 4 scenarios — 2×2 matrix with the two critical uncertainties as axes
- Name and narrative — Give each scenario a vivid name and story
- Test strategy — Does your current strategy survive all 4 scenarios?
- Early warning indicators — Define signals indicating which scenario is unfolding
2×2 Scenario Matrix
High [Uncertainty A]
| |
| S3 | S1
High [B] |---------|--------
| S4 | S2
| |
Low [Uncertainty A]
Strategic Narrative (One-Page Strategy)
Template:
Where we play: [Target market/segment description]
How we win: [Value proposition / differentiation]
Capabilities needed: [3-4 core capabilities required]
Management systems: [Metrics, cadences, incentives]
What we must stop: [Activities that don't fit the strategy]
Strategy Pitfalls to Avoid
- Strategy as aspiration: "Be the best" is not a strategy. Strategy requires choices.
- Boiling the ocean: Trying to pursue too many strategic directions simultaneously.
- Ignoring implementation: Great strategy + poor execution = nothing.
- Analysis paralysis: Strategy needs enough data but also conviction.
- Strategy as a document: Strategy lives in decisions and resource allocation, not PDFs.
Strategy Review Checklist
- Does the strategy make clear choices about what NOT to do?
- Is the differentiation specific and defensible?
- Do resource allocation decisions reflect the stated strategy?
- Are OKRs directly derived from strategic priorities?
- Is the strategy communicated in a way the team can act on?
- Does the strategy account for the top 3 competitive threats?
- Is there a clear link between strategy and financial targets?