1.

Classic Strategy & Portfolio Frameworks

[Link] Analysis (Andrews’ 4

Pillars) Purpose / When to use
 To get a global, simple picture
of a firm’s situation before
deciding strategy.
 Use at the start of a project,
for diagnosis, and to link
internal and external analysis.
Core Idea
 S – Strengths (internal,
positive)
 W – Weaknesses (internal,
negative)
 O – Opportunities (external,
positive)
 T – Threats (external, negative)
 Andrews adds 4 pillars:
1. Inside
(Strengths/Weaknesse
s) – resources,
capabilities, culture
2. Outside
(Opportunities/Threat
s) – industry,
competitors,
regulation
3. Management –
objectives, risk
appetite, values, style
4. Society at large –
social expectations,
ESG, legitimacy
How to Apply – Step by Step
2. Define the scope
o Business unit / entire
firm / specific
product / country?
o Example: “SWOT of
our Indian B2B SaaS
business.”
3. List internal strengths and
weaknesses
o Strengths: brand,
technology, cash,
relationships, patents,
 o Translate each into concrete actions (“enter SME segment through partners”, etc.).

1.2 Ansoff’s Growth Matrix

Purpose
 To choose growth
directions: stay in
current business or
move to new
products / markets.
Matrix
 Existing products /
existing markets →
Market
Penetration
 Existing products /
new markets →
Market
Development
 New products /
existing markets →
Product
Development
New products / new markets →

Diversification How to Apply

1. Map current portfolio
o Pick one product line and current
markets (geography, segment).
2. Ask four questions:
o How can we sell more of the same product to the same market? (penetration:
promo, pricing, distribution).
o Can we enter new markets with the current product? (new geos, new
segments).
o Should we develop new products for current customers? (adjacent features).
o Do we need new products in new markets (diversification, usually highest
risk)?
3. Assess risk vs return for each quadrant
o Penetration: lowest risk.
o Diversification: highest risk, needs capabilities/finance.
4. Select a growth path
o Decide 1–2 main directions over next 3–5 years and define concrete initiatives per
box.

1.3 BCG Growth–Share Matrix

  Stars: high share, high growth → invest to sustain leadership.
 Cash Cows: high share, low growth → milk for cash.
 Question Marks: low share, high growth → decide to invest or exit.
 Dogs: low share, low growth → typically divest / harvest.
How to Apply
1. Define “business units” (SBUs) – products, segments, country lines.
2. Measure:
o Market growth (industry CAGR).
o Relative market share (your share / leader’s share).
3. Plot each SBU on the matrix.
4. Decide role and resource allocation:
o Stars → heavy capex, marketing.
o Cash Cows → low capex, high cash extraction.
o Question Marks → choose a few to turn into Stars, exit the rest.
o Dogs → reduce investments, consider sale/closure.
5. Link to financing: Cash Cows fund Stars & selected Question Marks.

1.4 GE / McKinsey Portfolio Matrix

Purpose
 More nuanced portfolio
tool when BCG is too
simplistic.
 Evaluate SBUs on Industry
Attractiveness and
Business Strength (not just
growth/share).
Matrix Structure
 Axes are usually Low–
Medium–High (3x3 grid).
Each SBU is placed based on

scores. How to Apply

1. Define criteria
o Industry attractiveness: market size, growth, profitability, entry barriers, regulation,
tech outlook.
o Business strength: market share, brand, technology, cost position, distribution,
management quality.
2. Score each SBU
o For each criterion, rate 1–5.
o Weight criteria; compute weighted average for each axis.
 3. Plot SBUs on the 3x3 grid
o Top-right: invest/grow.
o Middle: selectively invest.
o Bottom-left: harvest/divest.
4. Make portfolio decisions
o Allocate capex and management attention according to position.

1.5 PIMS Analysis (Profit Impact of Market Strategy)

Purpose
 Empirical framework linking strategic
variables to ROA/ROI, based on large
database.
Key Drivers
 Market share
 Product quality
 Investment intensity
 Vertical integration
 Relative costs
 Market growth, etc.
How to Apply
1. Collect data on your business and
benchmark (share, quality, cost, capex
intensity).
2. Compare with PIMS insights (if you have access): e.g., higher quality and share → higher
ROI.
3. Identify strategic levers:
o Should you improve quality? Gain share? Reduce cost?
4. Prioritize initiatives that move variables correlated with higher profitability.
(For exams, knowing PIMS = database-based, empirical link between strategy variables and
profitability is enough.)

1.6 Core Competence (Prahalad & Hamel)

Purpose
 To identify what the firm is
uniquely good at and build
strategy around it.
Characteristics of a Core Competence
1. Offers access to multiple markets.
2. Provides significant value to
 3. Difficult for competitors to imitate.
How to Apply
1. List all capabilities (R&D, brand, processes, platforms, relationships).
2. Test each against 3 criteria above.
3. Select 2–5 true core competences.
4. Design strategy to:
o Protect (keep tacit knowledge, culture).
o Deepen (invest in training, R&D).
oLeverage (apply competence to new

products/markets). Example: “Logistics excellence” at Amazon, “Chip

design” at Nvidia.

1.7 DuPont Analysis

Purpose
Break ROE into components to see where performance comes

from. Formula
 ROE = (Net Profit / Sales) × (Sales / Assets) × (Assets / Equity)
= Net Margin × Asset Turnover × Financial Leverage
How to Apply
1. Compute net margin, asset turnover, leverage.
2. Compare against peers or history.
3. Diagnose:
o Low margin? → cost/pricing issue.
o Low turnover? → asset productivity issue.
o Very high leverage? → risk issue.
4. Link to strategy:
o Improve operations to raise margins.
o Optimize asset base to improve turnover.
o Adjust capital structure to manage risk.

1.8 Industry Life Cycle Analysis

Purpose
 Understand where the industry sits: Introduction → Growth → Shakeout → Maturity →
Decline, and adapt strategy.
Key Features per Stage
 Introduction: small volume, high uncertainty, technology fluid.
 Growth: demand rising quickly, many entrants, high margins.
 Shakeout: competition intensifies, consolidation.
 Maturity: slow growth, price competition, efficiency key.
 Decline: shrinking demand, exit or niche.
How to Apply
1. Identify stage using data: growth rate, number of players, margin trends, innovation speed.
2. Match strategy:
o Introduction: experiment, educate customers.
o Growth: scale, build brand, secure channels.
o Shakeout: cost reduction, M&A, exit weak segments.
o Maturity: operational excellence, consolidation, focus on best customers.
o Decline: harvest, niche focus, divest.

1.9 Hambrick & Fredrickson “Strategy Diamond”

Purpose
 To define what a real strategy is = an integrated set of choices:
Arenas – Vehicles – Differentiators – Staging – Economic Logic.
Elements
1. Arenas – Where will we be active?
o Products, markets, geographies, segments,
technologies, value chain stages.
2. Vehicles – How will we get there?
o Organic growth, alliances, licensing, franchising, JVs,
acquisitions.
3. Differentiators – How will we win?
o Cost, quality, speed, design, brand, customer intimacy.
4. Staging – What will be our speed/sequence?
o Timing of moves, priority of markets, resource
constraints.
5. Economic Logic – How will we make money?
o Low cost + high volume, premium price, network
effects, locked-in customers, etc.
How to Apply
6. Clarify each element explicitly for your business:
o Arena: “Mid-market B2B SaaS in India and SEA, HR &
payroll modules.”
 o Vehicles: “Organic + selective partnering with local integrators.”
o Differentiators: “Local compliance expertise, UX in local languages.”
o Staging: “India first, then SEA; payroll first, HR later.”
o Economic Logic: “Subscription recurring revenue, low churn, high LTV/CAC.”
2. Test internal consistency:
o Do chosen arenas fit with vehicles and differentiators?
o Does staging reflect resource limits?
o Does economic logic align with differentiators?
3. Use evaluation questions from PPT (quality of strategy):
o Fit with environment? Exploit key resources? Sustainable differentiators? Internal
consistency? Enough resources? Implementable?

4. Organization Structure & Culture Frameworks

[Link] – “Strategy and

Structure” Core Thesis
 “Structure follows strategy.”
 As firms grow in volume, geography, integration, diversification, they must change
structure.
Growth Path
5. By volume (same product, more output) → Simple / Functional structure.
6. By geography → functions spread across regions.
7. By integration (vertical/horizontal).
[Link] product diversification → multidivisional (M-
form). How to Apply
9. Ask: Has our strategy changed (new markets /
products / acquisitions)?
10. Check: Is our current structure blocking performance
(slow decisions, confusion)?
11. Consider transition:
o Single business → functional.
o Multi-products/geos → M-form.
o Complex matrix of projects and regions →
matrix.

2.2 Simple Structure

 Owner-manager makes all key decisions.
  Staff are generalists; each knows the value chain; high autonomy.
When it fits
 Small firms; single product, single geography; focus strategies.
Problems as firm grows
 Complexity increases; owner becomes bottleneck; inefficiencies; lack of specialization.
How to Apply
 Use when starting up or in very small operations.
 Monitor growth; when complexity rises, move to functional structure.

2.3 Functional Structure

 CEO + functional departments (Marketing, Finance, HR, R&D, Operations…).
Advantages
 Specialization; clear authority; efficiency; professional development.
Drawbacks
 Silos; poor cross-functional coordination; CEO overloaded with integration.
How to Apply
1. Create functions based on key tasks.
2. Define roles, responsibilities and KPIs per function.
3. Set integrative mechanisms: cross-functional teams, committees.
4. Use when firm has single or dominant business with low diversification.

2.4 Multidivisional Structure (M-form)

 Firm organized into divisions (by product, geography, or customer group).
 Each division = profit center with its own functions.
 Corporate HQ handles portfolio decisions and support functions.
Benefits
1. Easier performance monitoring.
2. Comparison between divisions → better resource allocation.
3. Pressure on poorly performing divisions to improve.
Losses
 Harder to create firm-wide core competencies.
 Risk of internal competition and loss of synergies.
How to Apply
1. Create divisions around coherent businesses (SBU).
2. Define P&L responsibility per division.
3. Set corporate roles: capital allocation, strategy, shared services.
4. Use when diversified or multi-country.

2.5 Matrix Structure

Employees have two bosses: e.g., Division head and Functional

head. Purpose
 Handle complexity: multiple products, geographies, and shared
functions.
 Encourage learning across divisions; reduce silos.
Problems
 Confusion, conflicts, slow decisions; high coordination cost.
 Requires mature managers and strong processes.
How to Apply
1. Use only when both dimensions are critical (e.g., global region ×
product line).
2. Clarify decision rights: who decides what (RACI can help).
3. Invest in conflict resolution, communication, and leadership training.

2.6 McKinsey 7S Framework

Purpose
To diagnose organizational

alignment. 7 Elements
 Hard S:
1. Strategy – plan to win.
2. Structure – how people are
organized.
3. Systems – processes, IT,
routines.
 Soft S:
4. Shared Values – core beliefs.
5. Style – leadership style.
6. Staff – people, profiles.
7. Skills – capabilities.
How to Apply
1. Map current state: describe each S
honestly.
 2. Map desired state based on new strategy.
3. Gap analysis:
o Are systems supporting the strategy?
o Do skills match ambitions?
o Is structure consistent with processes?
4. Define change actions: training, restructuring, process redesign, leadership changes, etc.

2.7 Competing Values Framework

Purpose
 To understand
organizational culture and
design change.
Axes
 Flexibility vs Control
Internal focus vs External

focus Four Quadrants

1. Clan (flexible, internal) – family-
like, teamwork, participation.
2. Adhocracy (flexible, external) –
innovation, entrepreneurship.
3. Market (controlled, external) –
competitiveness, goal
achievement.
4. Hierarchy (controlled, internal)
– processes, rules, stability.
How to Apply
5. Assess current culture via
surveys or observation.
6. Plot where the firm lies (mix of
quadrants).
7. Decide target culture aligned
with strategy.
8. Design interventions (HR
policies, leadership behaviors,
symbols) to shift culture.

2.8 Schein’s Culture Model

Three Levels
9. Artifacts – visible
stuff (dress code,
layout, rituals,
slogans).
 3. Infer basic assumptions:
o What behaviors get rewarded/punished?
o What do people assume about employees, customers, risk?
4. Check alignment:
o Are espoused values consistent with actual behavior?
5. Culture change:
o Start by changing leaders’ behavior, systems, and rewards, not just slogans.

2.9 Mintzberg’s Structural Configurations

(You don’t need every tiny variant for
exam; focus on core idea.)
Core Configurations
 Simple structure – central
strategic apex (entrepreneur).
 Machine bureaucracy – strong
technostructure, standardization,
rules.
 Professional bureaucracy –
professionals with autonomy
(universities, hospitals).
 Divisionalized form – semi-
autonomous divisions (like M-
form).
 Adhocracy – flexible, project-
based, innovation-driven.
How to Apply
1. Identify dominant coordinating
mechanism:
o Direct supervision?
Standardization? Skills?
Mutal adjustment?
2. Match to environment & strategy:
o Stable, simple → machine
bureaucracy.
o Complex, dynamic →
adhocracy.
3. Recognize tensions when strategy
and configuration misfit.

2.10 RACI Framework

Purpose
 Clarify roles
How to Apply
1. List key activities (rows).
2. List key roles/positions (columns).
3. For each activity, assign R, A, C, I.
4. Check quality:
o Exactly one A per task.
o At least one R.
o Not everyone is C/I for everything.
Use RACI especially at start of projects, during org changes, and in complex programs (as PPT says).

2.11 Fishbone (Ishikawa) Diagram

Purpose
Identify root causes of a

problem. Structure
 A “fish” with head = problem,
bones = cause categories.
 Common categories:
o People, Equipment,
Materials, Environment,
Methods, Management.
How to Apply
1. Agree on problem statement,
write at head (e.g., “High defect
rate”).
2. Define categories as main bones.
3. Brainstorm causes: ask “Why
does this happen?” and add to
branches.
4. Keep asking “why?” to go deeper
into sub-causes.
5. Cluster and prioritize root causes.
6. Design corrective actions per root
cause.

3. Market & Competitive Analysis

Frameworks

1.3C Framework (Company – Customers –

Competitors) Purpose
 Build strategy that aligns customer needs,
company strengths, and competitive position.
 3. Company – Performance, advantages, resources, cost structure, marketing, service.
How to Apply
1. Customers – Use the 8 PPT factors:
o Identification, segmentation, size, growth, preferences, WTP, bargaining power,
channels.
2. Competitors – Use the 11 PPT factors:
o Identification, segmentation, size/concentration, performance, industry lifecycle,
drivers, strategies, advantages, barriers, supplier & customer power.
3. Company – Use 10 PPT factors:
o Performance, advantage, strategy, products, finances, cost structure, cohesion,
marketing, distribution, service.
4. Look for overlap area
o Where your company strengths match key customer needs better than
competitors.
5. Design strategic moves in that overlap: unique value propositions, positioning, pricing,
channel strategy.

4. Blue Ocean Strategy & Innovation Frameworks

[Link] Ocean Strategy & Value

Innovation Purpose
 To create new market space where competition becomes irrelevant, instead of fighting in
red oceans.
Key Ideas
 Value Innovation: simultaneously increase value for customers and reduce cost for the
company by changing the “value curve”.
 Challenge industry assumptions rather than accept them.
Application Logic
5. Ask: can we change the rules of the game?
6. Identify new value combinations customers would love but industry ignores.
7. Remove or reduce features taken for granted but not valued.

4.2 ERRC Grid & Strategy Canvas

ERRC Grid
 Four questions:
1. Eliminate –
which factors
taken for
granted should
be removed?
2. Reduce – which
should be
 3. Raise – which should be raised above industry standard?
4. Create – which new factors should be created?
Strategy Canvas
 Graph showing value factors on x-axis and offering level on y-axis.
Plot current industry vs your new offering → new value

curve. How to Apply

1. List industry factors customers currently get (price, features,
service, etc.).
2. Draw current value curves of main competitors.
3. Use ERRC to redesign your curve:
o Decide what to eliminate, reduce, raise, create.
4. Plot new curve on strategy canvas.
5. Translate into concrete changes: product design, processes,
partnerships.

4.3 Non-Customers – Three Tiers

Purpose
 Expand demand beyond
existing customers.
Tiers
1. Soon-to-be non-
customers – currently
customers but about to
leave.
2. Refusing customers –
consciously choose
alternatives.
3. Unexplored non-
customers – never
considered the industry’s
offering.
How to Apply
4. Identify each tier for
your business.
5. Ask:
o Why are they
leaving / refusing
/ ignoring us?
o What barriers
(price,
complexity,
image,
accessibility)?
How to Apply
1. Build the 6x6 grid (stages × levers).
2. For each cell, ask:
o What do customers experience now?
o Where are pains and frustrations?
3. Mark current industry focus (where competitors over-deliver).
4. Find white spaces (neglected cells) where you could create new value.
5. Design features / services that target these white spaces.

4.5 Six “Mental Blocks” / Paths to Blue Oceans

The PPT mentions six dimensions (industry, strategic group, buyer group, functional–emotional
orientation, time, product/service scope). These correspond to Six Paths Framework:
6. Across alternative industries
7. Across strategic groups
8. Across buyer groups
9. Across complementary products/services
10. Across functional vs emotional appeal

[Link]
time How to Apply
 For each
path, ask:
o Can
we
shif
t
lev
el
(e.g
.
cha
nge
buy
er
gro
up
fro
m
use
rs
to
pur
cha
sers
)?
o Can
we
 3. Define price corridor
o Range of prices acceptable for the larger mass of target buyers.
4. Choose a price point
o Positioned to communicate value, support your economic logic, and encourage
adoption.

4.7 BOS Implementation – Tipping Point Leadership & Fair Process

Tipping Point Leadership
 Focus on a few key influencers, key processes, key acts that can move the whole
organization.
Four Hurdles (from PPT)
1. Cognitive hurdle – people don’t see the need.
2. Resource hurdle – limited people/money/time.
3. Motivation hurdle – lack of energy and commitment.
4. Political hurdle – internal resistance, vested interests.
Fair Process (3 E’s)
 Engagement – involve people in decisions that affect them.
 Explanation – explain the rationale behind decisions.
 Expectation clarity – clear roles, targets, consequences.
How to Apply
5. Identify tipping points: people or units whose conversion will influence many
others.
6. Design visible acts (e.g., leadership visits, symbolic cuts, pilot projects).
7. Use fair process consistently to maintain trust and prevent backlash.
8. Track progress across the 4 hurdles and adapt.

9. Industry & Technology Evolution Frameworks

1. Product Life Cycle (PLC) – Revenue & Profit
 PLC stages: Introduction, Growth, Maturity, Decline.
 Revenue and profit curves differ: profit often lags revenue.
How to Apply
10. Map sales and profit over time for your product.
11. Identify current PLC stage.
12. Tailor strategy:
 o Intro: awareness, trial.
o Growth: expand distribution, improve product.
o Maturity: differentiate, cost manage, segment.
o Decline: prune products, harvest, reposition or exit.

5.2 Technology Paradigms, S-Curve & Strategic Inflection Point

S-Curve
 Performance vs effort: slow early, steep improvement,
then plateau.
Strategic Inflection Point
 Point where old trajectory breaks (new tech, regulation, competitor model) → fundamental
change in success factors.
How to Apply
1. Track technology performance and cost over time.
2. Detect signs of plateau or new disruptive tech emerging.
3. Define inflection point scenarios:
o What if new tech becomes 2× better/cheaper?
4. Plan options: invest early, partner, or pivot.

5.3 Strategy in Emerging Industries

Characteristics
 Technological uncertainty, strategic uncertainty, high initial costs, steep cost reductions,
first-time buyers, subsidy issues, regulatory uncertainty, customer confusion.
Strategic Questions
 Early vs late mover advantage?
 Buyer needs: size, urgency, predictability?
 Can you shape industry structure?
 Externalities? Mobility barriers?
How to Apply
 If early mover: focus on experimentation, standards, partnerships.
 If late mover: leverage learning, scale, and lower risk.

5.4 Strategy in Fragmented Industries

Why fragmented?
  Low entry barriers, lack of scale economies, high transport or inventory cost, diverse needs,
exit barriers, government policy.
What to Do
 Create barriers to entry, standardize, build scale, reach critical mass, differentiate (product,
geography, customer type).

5.5 Strategy in Mature & Declining Industries

Changes in Maturity
 Slow growth, more price competition (red ocean), demanding buyers, strong cost pressure,
frequent operational failures, difficult innovation, international competition, margin
squeeze.
Pitfalls
 Self-delusion, being “caught in the middle,” cash traps, irrational reactions, hiding behind
“higher quality” without competitive pricing.
What Management Should Do
 Adjust expectations, be disciplined, focus efficiency, manage human dimension (morale,
communication), rationalize product mix, process innovation, correct pricing,
buy cheap assets selectively.

5.6 Combined SWOT & Product Life Cycle View

Idea
 Use PLC to understand product/industry stage, then use SWOT to design strategies
appropriate to that stage.
How to Apply
1. Determine PLC stage.
2. For that stage, identify:
o Strengths/weaknesses relevant to stage (e.g., cost structure, innovation).
o Opportunities/threats (e.g., new markets, declining demand).
3. Craft strategies that align internal capabilities with PLC realities.

6.M&A / Consolidation Framework – Kearney Endgame

Tool Purpose
 Understand industry consolidation trajectory and
choose M&A strategy accordingly.
Assumptions
 Industries consolidate over time; patterns are
somewhat predictable.
  Endgame curve helps align M&A moves with stage.
Four Stages
1. Opening (Emerging Industry)
o Many players, excitement, VC money, few large consolidators.
o Strategy: build entry barriers, protect first-mover advantage, grow revenue & share,
exploit legal/political changes, master acquisition process.
2. Scale Stage (Growing Industry)
o Players seek scale; leaders shift frequently; margins still thin due to competition.
o Strategy: reinforce culture, grow as fast as possible via acquisitions, build integration
model.
3. Focus Stage (Growing Industry)
o Emphasis moves from speed to finesse; mega-deals; aim to be one of few global
leaders.
o Strategy: optimize portfolio (sell low-growth segments), unify brand, avoid
destructive wars with other giants, focus on shareholder value.
4. Balance & Alliance Stage (Mature Industry)
o Few dominant winners; big mergers mostly done.
o Strategy: manage regulation risk, defend position, search for adjacent markets, spin
off niches, fight complacency, maintain high governance & trust.
How to Apply
5. Place your industry on the curve: count players, consolidation level, deal history.
6. Identify your company’s position relative to rivals.
7. Choose M&A strategy:
o Opening → land grab.
o Scale → roll-up and integration excellence.
o Focus → portfolio pruning, mega-mergers.
o Balance → alliances, adjacencies, spin-offs, regulatory management.
2nd deck
8. The Big Meta-Framework: “How to Conduct Industry Analysis”
Your deck actually gives a process framework for industry analysis. Let’s start there, because all the
other frameworks plug into it.
1. Stepwise Industry Analysis Framework
From the slides (slightly rephrased & merged across similar slide versions):
MFSA- PGP-Second Deck
1. Step 0 – Business Analysis (inside the firm)
 o SWOT (4 pillars: Inside, Outside, Management, Society).
o Ansoff (growth directions).
o Organization design (structure vs strategy).
2. Step 1 – Industry Characteristics (industry level)
o Porter’s 5 Forces (+ PESTEL in later slide).
3. Step 2 – Strategic Groups (within industry)
o Identify dimensions of competition, strategic groups, mobility barriers, bargaining
power, vulnerability to substitutes, exposure to rivalry.
4. Step 3 – Firm’s Position & Competitors
o Competitor intelligence, competitor moves & signals, Mintzberg’s 5Ps, gap analysis,
etc.
5. Step 4 – Strategic Choice / Possibilities
o Evaluate “how to play”: core competence, value chain, SWOT, etc.
6. Step 5 – Industry Transition & Change Management
o S-curve, industry inflection point, industry transition, strategies in
emerging/mature/declining industries, change management.
Think of this as the master “recipe”. Everything below are the tools you plug into
each step.

7. Competitive Intelligence & Competitor Analysis Frameworks

[Link] Intelligence System

(CIS) Purpose
 To systematically collect, process, analyze and communicate information about competitors
and the industry so strategy is not just “gut feel”.
Components (from your slide)
MFSA- PGP-Second Deck
8. Data Collection – Field Data
o Sales force reports
o Distributors, suppliers
o Ad agencies
o Interviews
o Hires from competitors
o Trade associations
o Market research firms
o Security analysts
 2. Data Collection – Published Data
o Business news
o Reports & filings
o Advertisements
o Speeches, analyst calls
o Patent / legal records
3. Compiling & Cataloguing
o Files on each competitor
o Internal library
o Abstracts, clipping services
4. Digestive Analysis
o Rankings
o Summaries
o Periodic reviews
o Relative line analysis
o Scenario creation
5. Communication to Top Management Team (TMT)
o Regular reporting
o Periodic reviews
o Urgent alerts
How to Apply
6. Define objectives: What do we want to know? (Pricing strategy, capacity plans, acquisitions,
R&D focus…)
7. Design data flows:
o Tell sales/distribution exactly what to observe & report.
o Subscribe to and systematically monitor external sources.
8. Set up a small CI unit:
o Create competitor files with standardized templates (profile, financials, moves).
o Build time series: don’t just store, track changes.
9. Analysis routines:
o Quarterly competitor review: share trends, risk maps, opportunities.
o Use frameworks like Porter competitor analysis, market signals, scenario planning.
10. Integrate into strategy:
 o Link output into annual strategy reviews, pricing decisions, capacity decisions, M&A
discussions.

1.2 Porter’s Competitor Analysis: Response Profile

The deck uses the classic Porter four-part competitor analysis: Future Goals, Assumptions, Current
Strategy, Capabilities.
MFSA- PGP-Second Deck
Core Idea
You don’t just look at what competitors are, but what they want, believe, do, and can

do. Four Blocks

1. Future Goals (Business Unit & Corporate Parent)
o BU goals: control systems, accounting, leadership background, risk appetite, explicit
& implicit financial goals.
o Corporate goals: current group results, strategic stakes, diversification plans, top
management values.
2. Assumptions
o How competitor views itself (cost/quality/tech position).
o Historical identity (products, policies, geographies).
o National/cultural values.
o Beliefs about future demand, rivals, industry “conventional wisdom”.
3. Current Strategy
o Management background, dominant logic (“industry recipe”).
o Key operating policies: how they compete now (cost, differentiation, niche).
o Internal coalitions and politics.
o Reactions so far to others’ moves; where they are visibly committed.
4. Capabilities
o Core capabilities: best at / worst at; likely to change?
o Growth ability: will growth dilute or strengthen capabilities?
o Quick response capacity: slack, cash reserves, borrowing capacity.
o Adaptability: cost structure, unused capacity, exposure to macro shocks.
o Exit barriers, staying power.
How to Apply
5. For each key competitor, fill a one-page profile with these four blocks.
6. Ask:
 o What moves are compatible with their goals & assumptions?
o Where are they vulnerable (capabilities vs aspirations mismatch)?
o How likely and how strong will retaliation be if we attack X?
3. Use this to simulate their future moves and prepare counters.

1.3 Market Signals Framework

Purpose
 Interpret competitors’ actions and communications as “signals” about future moves and
attitudes.
Types of Signals in the Deck
MFSA- PGP-Second Deck
1. Prior Announcements of Moves
o Capacity additions
o New product launches
o Threats (e.g., price war)
oCommunications to financial

markets These can be:

o Preemptive (scare rivals from
entering / expanding)
o Bluff (no real intention)
o Earnest commitments
o Attempts to reduce provocation (“we
expand, but not in your core
segment”).
2. Announcements After the Fact
o Results disclosures, selective data
o Public statements about industry,
trends, strategy
o Praise or criticism of others’ moves
(conciliatory or aggressive).
3. Other Signals
o “We could have done A but didn’t”
→ signalling restraint.
o Launching a fighter brand.
o Filing antitrust suits.
oMoves that diverge strongly from industry norms = often

aggressive. How to Apply

1. Build a baseline competitor analysis first (so you know their usual
behaviour).
 2. Track all public and semi-public actions: announcements, conference comments, brand
launches, lawsuits.
3. Classify signals:
o Bluff / threat / commitment / conciliation.
4. Ask:
o Are they preparing for entry into a new segment?
o Testing market reaction?
o Trying to coordinate (avoid price war) or intimidate?
5. Integrate into scenario planning and your own moves (e.g., whether to escalate, match, or
ignore).

1.4 Move Types: Threatening, Defensive, Commitment, Cooperative, Non-threatening

Threatening Moves
 Aggressive actions (price cuts, capacity build-up, entry into key segment).
 Key questions:
o How likely is retaliation?
o How soon?
o How effective?
o Can retaliation be influenced (alliances, signalling)?
Retaliation Dynamics
 Perceptual lags – rival doesn’t immediately recognize threat.
 Strategic lags – time to design counter-strategy.
 Organizational lags – internal conflicts, goals misalignment.
Defensive Moves
 Aim: create a position where rivals see attack as unintelligent.
 Examples:
o Discipline in maintaining price/quality consistency.
o Denying a base: ensuring rivals never hit their share / profit targets if they attack
you (always respond).
 Best defense: credible, prompt retaliation expected with high certainty.
Commitment Moves
 Communicating hard commitment, so rivals know attack is costly.
Three major types (from your

slide): MFSA- PGP-Second Deck

 1. Firm sticks unequivocally with a move it is making.
2. Firm will retaliate (and continue to retaliate) if competitor does X.
3. Firm will refrain from certain actions (no move) to build trust.
 Backed by:
o Irreversible investments (sunk costs).
o Public statements.
o Systems that make backing down difficult (e.g., bonus tied to share).
Cooperative Moves
 Create win–win for the industry:
o If rivals join
o Even if they don’t join
o In spite of their participation
Examples: joint lobbying for regulation, standard-setting, co-investing in infrastructure.
Non-Threatening Moves
 Moves perceived as non-threatening if:
o Competitors don’t even notice.
o They notice but don’t care.
o Their position is only minimally impaired.
How to Apply
 When designing your own moves, explicitly choose:
o Do we want a threat, a commitment, or a cooperative signal?
o How can we make our commitment credible?
 When reading others’ moves:
o Combine market signals + response profile to guess intent and future behaviour.

2. Industry Structure & Strategic Group Frameworks

1. Porter’s Five Forces
Used explicitly in Step 1 of industry analysis.
MFSA- PGP-Second Deck
Forces
1. Threat of new entrants
2. Bargaining power of suppliers
 3. Bargaining power of buyers
4. Threat of substitutes
5. Rivalry among existing competitors
How to Apply (within this deck)
 Step 1 = describe generic industry conditions:
o Are there high entry barriers?
o Is rivalry intense?
o Are substitutes strong?
 Step 2 (strategic groups) then refines this view by looking at how different clusters of firms
experience the forces differently.

2.2 Strategic Groups & Strategic Group Mapping (SGM)

Definition
A strategic group is a set of firms in an industry with similar business models or strategy
combinations (e.g., same price range, similar product quality, same channel type).
MFSA- PGP-Second Deck
Why Important?
 Helps define the real competitive set.
 Shows who competes with whom, and where profit pools are.
Steps of Strategic Group Formation
Step 1 – Identify Competitors in the Industry
 Choose firms offering similar products/services.
 Don’t include totally unrelated players.
Step 2 – Identify 2 Key Strategic Variables
 Choose two dimensions that:
o Are strategic (reflect different positions).
o Are NOT highly correlated.
o Vary across competitors.
 Examples:
o Price vs dealer network (as in your car example).
o Product quality vs R&D intensity.
o Degree of vertical integration vs brand strength.
 Map each firm on this 2D grid.
  Firms clustered near each other form a strategic group.
 Draw circles around groups; circle size = market share, income or other metric.
Step 3 – Identify How the 2 Variables Affect a Third Outcome Variable
 Choose an outcome measure (e.g., ROA, profit margin, growth).
 Examine how different combinations of the two axes explain variance in performance.
 This reveals:
o Attractive positions (high outcome).
oUnattractive

configurations. How to Apply

1. Collect data on your industry players (price levels, quality, network size, vertical integration
etc.).
2. Try several 2D maps until you find one that clearly separates groups and relates well to
profitability.
3. Identify:
o Your own group and alternative groups.
o Mobility barriers (what it takes to move from one group to another).
4. Use the map to:
o Spot under-served niches.
o Understand who will react most if you change strategy.

2.3 Dimensions of Competition

The deck gives a very rich list of strategic dimensions you can use in SGM and competitor analysis:
MFSA- PGP-Second Deck
 Specialization – breadth of product line, customer segment, geography.
 Brand Identification – reliance on advertising, sales force, differentiation.
 Push vs Pull – direct selling vs pushing through channels.
 Channel Selection – types of distribution.
 Product Quality – features, specs, performance.
 Technological Leadership – R&D leadership, though not always quality.
 Cost Position – low-cost vs average vs high-cost.
 Price Policy – premium vs discount, discounting style.
 Leverage – financial & operational leverage.
 Service Level – after-sales, support, ancillary services.
  Vertical Integration – captive supply/distribution.
 Relationship with Parent – autonomy, priorities.
 Relationship with Home/Host Country – political ties, national identity.
How to Apply
 Use these as axes candidates in strategic group maps.
 Also use them to build competitor profiles (who competes on what).
 Ask:
o Which dimensions matter most for customers?
o On which dimensions can we build a defensible advantage?

2.4 Entry Barriers vs Mobility Barriers

Entry Barriers (Porter-style) – protect the industry as a whole from new entrants from outside.
Examples (from slides):
MFSA- PGP-Second Deck
 Economies of scale
 Product differentiation / brand identification
 Switching costs
 Cost advantages independent of scale (learning, patents, gov. ties)
 Access to distribution channels
 Capital requirements
 Government policy
 Staying power
 Economies of scope
 Exit costs
Mobility Barriers
 Barriers that prevent firms from moving from one strategic group to another within the
industry.
 Example: a low-cost, no-frills group trying to move to premium luxury segment (needs brand
equity, design, dealer network).
Key Distinction
 Entry barrier → protects industry → affects “threat of new entrants” in 5 Forces.
 Mobility barrier → protects strategic group → affects threat of “intra-industry entrants”
(firms shifting groups).
How to Apply
 1. For each strategic group, list what you must have to join (brand, tech, capex, regulation).
2. Identify:
o Which groups are protected by strong mobility barriers.
o Which are easy to copy (low barriers).
3. Use this to decide:
o Where to position your firm.
o Whether you should try to shift groups or build barriers to protect your own group.

2.5 Rivalry Among Strategic Groups

Your slide explicitly mentions:
MFSA- PGP-Second Deck
 Market interdependence
among firms.
 Product differentiation
achieved by groups.
 Number and size of groups.
 Strategic distance between
groups.
 How groups “save” against the 5 forces (relationships with
buyers/suppliers/substitutes/entrants/rivals).
How to Apply
 Use SGM + 5 Forces combined:
o Which groups are most intense in rivalry (many
similar players)?
o Which groups are insulated (few players, strong
differentiation)?
o How does each group interact with buyers,
suppliers, substitutes?
 This tells you:
o Where profit pools are.
o Where entering would provoke hard retaliation
(because group is “protective”).

2.6 Oligopoly Models: Cournot, Bertrand, Stackelberg

Mentioned under “Oligopoly Dilemma: to be (do) or not to be (do)”.

MFSA- PGP-Second Deck
Core Idea
 In oligopoly, each firm’s optimal decision depends on rival
choices.

 o Each anticipates rivals’ output and chooses its own quantity.
2. Bertrand – Firms choose prices simultaneously.
o Small price cuts steal customers → prices may go toward marginal cost.
3. Stackelberg – Leader–follower model.
o One firm moves first, commits to a quantity; follower responds best.
How to Apply (strategically, not mathematically)
 Ask: in your industry, do firms mostly compete on capacity (Q) or price (P)?
 If capacity decisions are slow, you’re close to Cournot or Stackelberg:
o First mover can commit capacity (Stackelberg leader).
 If prices are flexible & easy to change → Bertrand-type dynamics, price wars more likely.
 This informs:
o Whether to use capacity announcements as strategic moves.
o Whether to avoid pure price competition and differentiate.

3. Strategy Concept & Positioning Frameworks

[Link]’s 5 Ps of
Strategy Purpose
 Show that “strategy” is
not just a plan, but can
be seen in different
ways.
MFSA- PGP-Second Deck
The 5 Ps
4. Strategy as Plan
o Intended,
conscious
guidelines
decided in
advance
(budgets,
expansion
plans).
5. Strategy as Ploy
o Specific maneuvers to outwit competitors (e.g., threatening to enter a market to
deter a rival).
6. Strategy as Pattern
o The consistency in behaviour over time, regardless of original plan.
7. Strategy as Position
o Where the firm is located in the environment; how it positions in the market (cost
leader, differentiator, niche).
8. Strategy as Perspective
  When doing industry analysis in Step 3–4:
o For your own firm:
 Plan: What did we intend to do?
 Pattern: What are we actually doing consistently?
 Position: How are we placed vs competitors (5 Forces, SG)?
 Perspective: What “lens” do we use? (e.g., tech-led, finance-led).
o For competitors:
 Their pattern may reveal underlying strategy even if their plan is unclear
publicly.
 This helps to:
o Detect misalignment (plan ≠ pattern).
o Predict competitor behaviour (pattern & perspective).

3.2 SWOT & Ansoff (as used in this deck)

In this second deck they appear only as part of Step 0 – Business Analysis.
MFSA- PGP-Second Deck
You already have them in detail from Deck 1. Here, the key use is:
 Before looking outward (industry), be clear on internal strengths/weaknesses and growth
options (Ansoff).
 Then decide which parts of the industry are realistic targets for you.
So in this deck, they are more inputs to industry analysis than standalone frameworks.

4. Planning, Gap & Scenario Frameworks

1. GAP Analysis – Competitive Intelligence
The slide “GAP Analysis – Competitive Intelligence / Planning: GAP Analysis Model” gives a
structured 5-step process.
MFSA- PGP-Second Deck
Purpose
 Identify gaps between desired and projected performance, both known and potential, and
understand triggers & trends behind them.
Steps
5. Identifying the Known Gap
o Compare current trajectory vs goals (sales, share, margins).
o Example: target market share 20%; forecast says 15% → 5-point gap.
 2. Creating a Backlog of Potential Gaps
o What could go wrong that hasn’t yet? (e.g., new entrant, regulation, tech
disruption).
o Build a list of latent risks.
3. List Triggers that May Lead to the Gap
o Which events would create/expand gaps?
o E.g., “If competitor cuts price by 15%”, “If interest rates rise”, “If supplier
exits”.
4. List Key Trends That Affect the Market
o Macro trends: PESTEL factors, technology, demographics.
o Industry trends: consolidation, commoditization, digitalization.
5. Assign Actions for All Areas
o For each known / potential gap:
 Preventive actions (avoid trigger).
 Contingency plans (if trigger happens).
 Strategic moves (position to benefit from some gaps).
How to Apply
 As part of Step 3 & 4 of industry analysis:
o Use Competitive Intelligence outputs to quantify gaps.
o Combine with Scenario Planning to see how gaps widen or shrink across
futures.
o Translate into clear action lists per gap: product, pricing, capacity, M&A,
alliances.

4.2 Scenario Planning Framework

Slides give a 6-step scenario building process.
MFSA- PGP-Second Deck
Step 1 – Formulate Core Issues
 Example: “What will the telecom
industry look like in 2030 for our
company X?”
Choose your industry & focal

firm. Step 2 – Identify Driving Forces of

Change
 Consider:
o PEST: Political, Economic, Social, Technological (plus Environmental, Legal →
PESTEL).
o Business constituents:
 Strategic groups & mobility barriers.
  5 Forces, generic strategies.
o Trends & triggers from competitive intelligence, gap analysis.
Step 3 – Group Change Drivers
 Cluster drivers into meaningful sets:
o e.g., “Regulatory liberalization”, “Consumer digital adoption”, “Technology cost
curve”.
 Use interviews/surveys with:
o Top management, boundary spanners, distributors, suppliers.
Step 4 – Rank Driver Groups
 Rank according to:
o Relevance (impact on issue).
o Novelty (how different the future could be).
o Substance (how concrete / well-defined).
 Typically choose two most important, most uncertain drivers as axes.
Step 5 – Develop Scenarios
 Use:
o Deductive approach: cross key drivers into 2x2 scenario matrix.
o Or inductive: build from consistent narratives.
o Or incremental: start from baseline and tweak.
Step 6 – Test Discreteness
 Ensure scenarios are:
o Mutually distinct (no minor variations).
o Internally consistent (no contradictions).
 Then for each scenario, evaluate:
o Risks & opportunities.
o Strategy robustness: which moves work across scenarios?
How to Apply
 Combine with GAP analysis:
o For each scenario, what gaps appear?
o What actions are robust vs scenario-specific?
 Use as input to strategic choice (Step 4 of main industry framework).

4.3 PEST / PESTEL as a Driver Framework

Mentioned in scenario planning and “How to conduct industry analysis”.
MFSA- PGP-Second Deck
PESTEL
 Political – regulation, trade policy, taxation.
 Economic – growth, interest rates, inflation, exchange rates.
 Social – demographics, lifestyles, education.
 Technological – innovation, R&D, disruption.
 Environmental – climate, sustainability, resource constraints.
 Legal – competition law, sector-specific rules.
How to Apply
 Use PESTEL to systematically scan external environment at Step 1 and Step 2 of scenario
planning.
 Each factor becomes a candidate driver for scenarios and gaps.

5. “Support” Frameworks Referenced in the Last Industry Analysis Slide

The final big “How To Conduct Industry Analysis” slide references other frameworks (mostly from
Deck 1) but uses them in a specific way:
MFSA- PGP-Second Deck
 S-curve & Industry Inflection Point – understand timing of industry transitions.
 Strategy in different industry environments – emerging, fragmented, mature, declining
(from Deck 1).
 Core Competence – understand what capabilities you bring to the industry.
 Value Chain – where in the chain you compete & where you can shift value.
 SWOT – to synthesize internal & external analysis.
 Change Management – to actually implement strategy once you decide.
How they plug in
 After:
o You analyse 5 Forces + Strategic Groups + CI + Scenario Planning,
 You then ask:

1. Where is the industry on its S-curve / life cycle?

2. What kind of environment is it? (emerging / mature / declining).
3. Given our core competences, where in the value chain can we win?
4. Synthesise using SWOT into clear strategic options.
5. Use change management frameworks (Lewin, etc.) to implement.
You’ve basically got a full-stack industry → firm → execution pipeline.
3rd deck

⭐ SECTION 1 — INTERNAL ANALYSIS (Resources, Capabilities, Structure)

[Link]-Based View (RBV) / VRIO

Framework What it is
A tool to understand which resources create REAL competitive advantage.
Why used
Because strategy must be built on what you uniquely have (skills, assets,
IP, brand).
VRIO = 4 tests
 V – Valuable
 R – Rare
 I – Inimitable (hard to copy)
O – Organized to

exploit When to use

 Early in analysis to
understand your
strengths
 When deciding which
businesses/products will
win
 When prioritizing
investments
How to apply (step-by-step)
2. List all
resources/capabilities
(brand, patents,
algorithm, supply chain,
culture).
3. Test each with VRIO.
4. Mark which resources
meet all 4 criteria.
5. Those → your true
sources of long-term
competitive advantage.
6. Build strategy around
those resources.

[Link] Competence (Prahalad–

Hamel) What it is
 2. Add real customer value

[Link] hard to
copy When to use
 To identify your
company’s
“superpower”
 To decide
diversification /
new product
ideas
 To find long-
term strategic
focus
How to apply
4. Identify
candidate skills
(“excellent UX
design”, “supply
chain
mastery”).
5. Test against 3
criteria above.
6. Keep 2–4 real
core
competences.
7. Use them to
launch new
products/marke
ts.

[Link] Chain
(Porter) What it is
A map of all activities
inside the firm
(logistics → operations
→ marketing →
service).
Why used
To find where costs are
too high or where
differentiation can be
created.
When to use
 Cost reduction
 Operational
improvement
What it is
“Structure follows strategy.”
As strategy grows, structure must evolve.
Why used
To ensure org structure MATCHES the complexity of the business.
When to use
 If company is expanding
 If performance is blocked by slow decisions
 During redesign or reorganization
How to apply
1. Identify strategy (single product? multi-country? diversified?).
2. Map current structure (simple? functional? M-form?).
3. If mismatch → redesign structure:
o Single product → functional
o Multi-product → divisional (M-form)
o Multi-country + multi-product → matrix
4. Clarify roles and decision rights.

⭐ SECTION 2 — STRATEGIC INTENT, STRETCH & INNOVATION

[Link] Intent (Prahalad–

Hamel) What it is
A 10–20 year ambition that is MUCH
larger than current resources.
Why used
To motivate the organisation and
create long-term direction.
When to use
 When setting “big picture”
long-term strategy
 When a company wants to
become global / top tier
 When existing resources are
limited
How to apply
1. Define a big win (“become
top 3 globally”).
2. Break it into yearly
challenges (“this year:
 4. Track progress annually.

[Link]
Stretch What it is
Turning the gap between ambition and resources into creative pressure.
Why used
For firms that must grow faster than competitors with fewer resources.
How to apply
1. Identify where resources fall short.
2. Use resource leverage:
o Use same resource in multiple ways
o Outsource vs build
o Cross-functional teams
3. Set tough goals.
4. Create a culture of “we must find a way”.

7. Competitive Innovation Framework (4 approaches)

MFSA-PGP-Third Deck (1)
Approach A: Build Layers of Advantage
What
Create several small advantages instead
of one big one.
When
When fighting stronger incumbents.
How
1. Start with one strength (low
cost).
2. Add new layers (quality, distribution, service).
3. Over time → unbeatable.

Approach B: “Loose Bricks” (Guerilla Entry)

What
Find weak spots where incumbents don’t
compete.
When
Late mover / challenger strategy.
How
1. Study where incumbents are lazy or blind.
2. Enter small niche first.
3. Expand once foothold is strong.

Approach C: Change Terms of Engagement

What
Redefine the industry rules.
When
Industry assumptions are rigid.
How
Ask:
 Why do all players price like this?
 Why sell through this channel only?
Then:
 Change packaging, channel, pricing,
customer target.

Approach D: Compete via Collaboration

What
Collaborate with rivals or suppliers to
gain advantage.
How
 Alliances
 Joint ventures
 Licensing
 Technology partnerships

⭐ SECTION 3 — FRAMEWORKS FOR

LATE MOVERS

8. Late Mover Psychological Barriers

What it is
Understanding why late entrants fail
mentally.
Barriers
 1. Local mindset trap
2. Underestimation of global competition
3. Overconfidence or self-doubt
[Link] global
exposure How to apply
 Benchmark globally
 Recruit leaders with
global exposure
 Visit global
customers
 Redefine aspiration
upward

[Link]–Pull Globalization
Framework Push (Home pressure)
 Competition at home pushes
the firm abroad.
Pull (Foreign opportunity)
 Global customers attract the
firm outward.
How to apply
10. Identify home push factors
(competition, regulation).
11. Identify pull factors (demand
abroad, customer access).
12. Choose markets where push +
pull are strongest.

[Link] Mover Strategy

Framework Paths
1. Benchmark & sidestep —
enter where leaders are
weak
2. Confront & challenge —
once stronger
3. Learn faster — shorten
learning cycles
How to apply
 Benchmark leaders → find
weaknesses
 Enter niche → build
11. Turton Framework (Mechanistic vs Organic)
What it is
Match organisation style to environment type.
Matrix

Environment Static Dynamic

Simple Mechanistic Semi-Organic

Complex Semi-Mechanistic Organic

When to use
When designing org structure to fit market complexity and change.
How to apply
1. Assess environment:
o Simple or complex?
o Stable or fast-changing?
2. Choose structure:
o Stable & simple → mechanistic (rules, hierarchy)
o Dynamic & complex → organic (teams, flexibility)

[Link]
Capacity What it is
Ability to absorb outside knowledge and use it.
3 stages
1. Acquisition
2. Assimilation
3. Exploitation
How to apply
 Hire externally
 Build R&D & partnerships
 Create cross-functional knowledge
flows
 Run weekly knowledge sharing sessions

13. Dynamic Capabilities (Teece)

What it is
Ability to sense opportunities, seize them, and transform the organization.
How to apply
1. Build environmental scanning (CI)
2. Create flexible investment processes
3. Reorganize regularly (portfolio change)
4. Encourage experimentation

⭐ SECTION 5 — PRODUCT, COST & TECHNOLOGY FRAMEWORKS

[Link] Life Cycle

(PLC) What it is
A model showing how
products evolve.
Stages
1. Introduction
2. Growth
3. Maturity
4. Decline
When used
To decide marketing,
investment, pricing, and
innovation strategy.
How to apply
15. Identify product
stage based on
sales curve.
16. Match strategy to
stage:
o Intro →
spend on
awareness
o Growth →
scale
production
o Maturity →
cost-
cutting and
differentiati
on
o Decline →
reduce
product
How to apply
1. Calculate your cost drop % per doubling of volume.
2. Estimate competitor’s learning rate.
3. Plan market share growth early to gain cost advantage.

[Link] S-Curve & Inflection

Points What
Technologies improve slowly → then
rapidly → then saturate.
Why used
To know when to invest in new technology.
How to apply
1. Track performance improvement vs
time.
2. Identify plateau.
3. Invest in next-gen technology just
before plateau.

⭐ SECTION 6 — INDUSTRY STRATEGY

FRAMEWORKS (Emerging / Fragmented /
Mature)

[Link] in Emerging
Industries What
Industries with high uncertainty,
low experience.
How to apply
 Educate customers
 Form alliances
 Shape standards
 Reduce uncertainty
through pilots
 Build early-mover
advantages

[Link] in Fragmented
Industries What
Industries with no dominant player
and low barriers.
  Consolidate (acquisitions)
 Build a brand
 Create economies of scale
 Focus on specific niches

[Link] in Mature / Declining

Industries What
Industries with slow growth and price wars.
How to apply
 Improve costs
 Rationalize product lines
 Target best customers only
 Consolidate or exit
 Avoid price wars unless you are cost
leader

⭐ SECTION 7 — PORTFOLIO FRAMEWORKS

20. BCG Growth–Share Matrix

(Stars, Cash Cows, Question Marks, Dogs)
When to use
To allocate resources between SBUs.
How to apply
21. Measure market growth and relative
share.
22. Place each SBU.
23. Decide invest / hold / harvest /
divest.

[Link]/McKinsey 9-Box
Matrix What
Evaluates SBUs using industry attractiveness and business strength.
How to apply
1. Choose weighted factors.
2. Score each SBU.
 3. Place in matrix.
4. Decide: grow / selectively invest / harvest.

[Link] Advantage
Matrix What it is
Classifies industries by:
 Size of
competitive
advantage
Number of ways to get

advantage Quadrants
 Volume businesses
 Stalemate
 Specialized
 Fragmented
How to apply
23. Identify your industry type.
24. Choose appropriate strategy:
o Volume → scale
o Specialized →
differentiation
o Fragmented → innovation
o Stalemate → cost control