# Strategy Frameworks > When to activate: corporate strategy, Porter's 5 Forces, Blue Ocean, BCG Matrix, Ansoff Matrix, Balanced Scorecard, SWOT, strategic planning, scenario planning, strategic narrative - Skill: `mattakushi432/strategy-frameworks` (Agent Skill) - Install (CLI): `npx skillmds@latest add mattakushi432/strategy-frameworks` - Raw SKILL.md: https://api.skillmd.com/api/skills/mattakushi432/strategy-frameworks/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: Mattakushi432 (https://skillmd.com/u/mattakushi432) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/mattakushi432/strategy-frameworks --- # 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 1. **Eliminate** factors that no longer add value 2. **Reduce** factors over-engineered beyond customer needs 3. **Raise** factors underserved by the industry 4. **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 1. **Environmental scan** — PESTLE + Porter's 5 Forces 2. **Internal assessment** — Core competencies, resource audit 3. **Strategic options** — Generate 3-5 strategic directions 4. **Strategic choice** — Evaluate options; select 1-2 5. **Strategy articulation** — Write the strategic narrative (1-page) 6. **Cascade** — OKRs, resource allocation, roadmaps 7. **Monitor** — Quarterly business reviews (QBRs), strategy checkpoints --- ## Scenario Planning Used when high uncertainty makes single-path forecasting unreliable. ### Steps 1. **Define the focal question** — e.g., "What is our market position in 5 years?" 2. **Identify driving forces** — macro forces affecting the focal question 3. **Rank by impact × uncertainty** — select top 2 critical uncertainties 4. **Build 4 scenarios** — 2×2 matrix with the two critical uncertainties as axes 5. **Name and narrative** — Give each scenario a vivid name and story 6. **Test strategy** — Does your current strategy survive all 4 scenarios? 7. **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?