Strategy & Competitive Analysis

Table of Contents

• Workflow
• Strategic Frameworks Overview
• Competitive Analysis Overview
• Common Patterns
• Guardrails
• Quick Reference

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

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 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