Strategy & Competitive Analysis

Table of Contents

• Purpose
• When to Use
• What Is It
• Workflow
• Strategic Frameworks Overview
• Competitive Analysis Overview
• Common Patterns
• Guardrails
• Quick Reference

Purpose

Develop robust strategies grounded in rigorous competitive and market analysis, using proven frameworks to diagnose challenges, formulate guiding policies, and specify coherent actions.

When to Use

Business Strategy Development:

• Market entry strategy (new product, geography, segment)
• Strategic planning (annual plans, 3-year vision, OKRs)
• Strategic decisions (build vs buy, pricing, positioning, business model)
• Growth strategy (organic, M&A, partnerships, platform)

Competitive Analysis:

• Competitor profiling (features, pricing, positioning, strengths/weaknesses)
• Threat assessment (new entrants, substitutes, competitive moves)
• Differentiation opportunities (market gaps, uncontested space)
• Industry structure analysis (5 Forces, consolidation, barriers to entry)

Strategic Frameworks:

• Need structured approach to complex strategic questions
• Multiple stakeholders requiring alignment on strategy rationale
• High-stakes decisions requiring rigorous analysis
• Teaching/communicating strategy to teams

What Is It

Strategy & Competitive Analysis applies proven frameworks to make better strategic decisions:

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

Competitive Analysis: Porter's 5 Forces (rivalry, new entrants, substitutes, buyer power, supplier power), competitor profiling (SWOT per competitor), positioning maps, moat assessment.

Example: SaaS startup entering 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 free tier, invest in SEO for "healthcare SaaS".

Workflow

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 strategic question

Clarify the strategic question, business context (industry, stage, constraints), competitive landscape, and success criteria. See Common Patterns for typical question types.

Step 2: Choose framework(s)

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

Step 3: Conduct analysis

For straightforward competitive analysis → Use resources/template.md. For complex multi-framework strategy → Study resources/methodology.md for integrated approach. Gather data (competitor research, market analysis, customer insights), apply framework systematically, document findings with evidence.

Step 4: Synthesize insights

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

Step 5: Validate and create action plan

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

Strategic Frameworks Overview

Framework	Use When	Key Output
Good Strategy Kernel	Overall strategy formulation	Diagnosis + Guiding Policy + Coherent Actions
Porter's 5 Forces	Assess industry attractiveness, competitive intensity	Industry structure analysis, profit potential
SWOT Analysis	Evaluate internal/external factors, compare options	Strengths, Weaknesses, Opportunities, Threats
Blue Ocean Strategy	Find uncontested market space, redefine competition	Strategy canvas, value innovation
Playing to Win	Define strategic choices explicitly	Where to play (markets/segments), How to win (advantage)
Value Chain Analysis	Identify cost advantages, differentiation opportunities	Value activities, cost drivers, linkages
BCG Matrix	Manage product portfolio	Stars, Cash Cows, Dogs, Question Marks
Competitive Profiling	Understand specific competitors deeply	Competitor SWOT, positioning, strategy inference

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

See resources/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 guiding policy
• Guiding policy must address 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: specific challenge (not "we need to grow" but "customer acquisition cost exceeds LTV in current market")
• Guiding Policy: 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 are competitors, 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

Resources:

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

Minimum Quality Standard:

• Diagnosis grounded in evidence (not assumptions)
• Guiding policy addresses root challenge (not symptoms)
• Coherent actions specific and mutually reinforcing
• Competitive analysis rigorous (Porter's 5 Forces or equivalent)
• Assumptions explicit, risks identified with mitigations
• Average rubric score ≥ 3.5/5 before delivering