Shazeeye's Blog Thoughts on User Experience, Technology and Business


Useful Frameworks to Drive your Business Strategy – Part 2 of 2

This post is a continuation of an earlier post. For the first four business strategy frameworks please read the earlier post.

5. Porter's Five Forces: Porter's five forces analyze the competitive forces in your industry - specifically, new entrants, substitutes, buyer power, supplier power, intensity of rivalry- so that you can optimally position yourself for sustainable competitive advantage and thus profitability. Nike's 5 forces show that overall it's an attractive industry for Nike with three of the five forces in favor for Nike - supplier power, threat of new entrants and buyer power.

6. Value Proposition and Positioning (4Ps & 3Cs): Value proposition defines the value you deliver to your target audience (benefits minus cost; benefits include points of parity and points of differences with respect to competitors) and positioning defines where the brand is in the customer's mind (hopefully customer and company perceptions are aligned). These terms can be better defined with the 4Ps and 3Cs. The 4Ps define your Product, Price, Promotion, Place (how you distribute your product) and the 3Cs define your Company, Customer and Competitors. The Land Rover positioning as well as the positioning for its individual car segments is seen on the image in the left.

7. Value Chain Analysis: The value chain analysis looks at the activities that reinforce the value proposition. It is a group of integrated value-added activities that are provided to the customer. It's easier for competitors to copy a company's value proposition but not it's value chain. The image below on the left shows the value chain for Crown Cork and Seal.

8. Boston Consulting Group's Growth-Share Matrix: The Boston Consulting Group suggests you look at two factors - market share and growth - to determine which products you should keep in your product portfolio and which you should drop. The image below gives you clear direction in terms of what to do if your product is a dog (divest), cow (milk), question mark (analyze further) or star (invest).

Happy New Year, Dear Readers! I wish you and your loved ones a blessed new year. May all your dreams come true!

Related posts:

  1. Useful Frameworks to Drive your Business Strategy – Part 1 of 2
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  1. Nice one! looking forward to your next post..:)

  2. Thanks Teddy!

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