Strategy Frameworks &

Models
Strategy Models
• A strategic planning model is a collective term for several elements that
contribute to the strategic planning process.
The core components of a strategic planning model include:
• A templated structure for creating goals.
• Frameworks for helping you to actually decide what you want to work on.
• A loose structure of governance to help you manage and track your
strategy.

“templates” into which one can drop ideas and

come out with a strategic plan which is sensibly
structured and gives you a clear set of actions
Strategy Frameworks
A strategic planning framework is a tool to focus on and fill in a specific element of the strategic
plan.

Strategy frameworks are tools that help structure business thinking

methodologies that you can apply to help you come up with your goals, as well as categorize
your goals to ensure they're balanced and will meet your needs.

Used to analyze business issues and develop strategies - Help you chip away at that overall plan
• OKR – set objectives
• Porter – How competition will impact performance

“Frameworks are like a lens to help you see different perspectives. You add a framework on top
of the [strategic plan] to slice and dice the model.”
Popular Strategy Models & Frameworks
Models :
Frameworks :
• Basic Model
• SWOT (inside –out)
• Issue Based Model
• 5 force (industry)
• Alignment Model
• PESTEL ( external PEST)
• Scenario Model
• VRIO
• Organic
• Gap Planning
• Blue Ocean
Popular Models - Strategic
Management Systems
Choice Matrix
• Hoshin Kanri
• Ansoff
• OKR
• BCG
• OGSM
• GE Mckinsey 9 box Matrix
• Balanced Score Card (Strategy
Mapping)
Basic Model
Also called simple model & used by companies
• New Small and don’t have a lot of
experience or resources for strategic
planning
• Don’t have too many serious problems to
solve
• Don’t have a lot of time to create an
extensive plan
• Focuses on establishing your company vision
and mission statement, setting goals to make
the vision a reality, outlining specific steps to
take to reach the goals, and monitoring
progress to keep everybody on track and to
address issues when they come up.
Issue Based Plan
• Also known as the goal-based model and
an extension of the basic model.
• more dynamic and popular with
established companies to develop more
comprehensive plans.
• Begin with a SWOT analysis to assess
current strengths, weaknesses,
opportunities, and threats. This analysis
will help you to understand how these
factors impact your business. Next, suggest
ways to overcome weaknesses and
leverage strengths, and develop a budget.
Then implement the plan and monitor
progress. Repeat as needed.
Alignment Model
• Align your business and Internal Operations
with the company’s strategic goals.
• This model is good for organizations that need
to reassess objectives or correct problem
areas that impede progress.
The model involves the following steps:
• Review your vision, mission statement, and
company goals.
• Determine what is currently working well and
what needs to be realigned.
• Make suggestions for improving the problem
areas.
• Implement changes to improve or eliminate
weak areas.
Scenario Model
• looks at different outside influences that
could have an impact on your organization.

• look at how outside influences might

impact your operations from the following
perspectives: best-case scenario, worst-
case scenario, and reasonable-case
scenario.

• These scenarios help you to figure out the

best way to respond to each. Determine
which would be the most likely scenario
and determine how you will address it.
Organic Model
• not linear or structured like the other models. Its
focus is on your company’s shared vision and values
instead of plans and processes. The idea is that a
company’s vision is achieved more organically when
teams are able to openly and continuously discuss
what steps to take. The model might include the
following three basic steps:
• Clarify shared vision and values.
• Based on shared values, determine the actions and
responsibilities for each person so they can work
toward the vision.
• Stakeholders report the results of the action plans.
• The organic model can work in large organizations
that can afford to take a long time to achieve their
vision and who can work well in a less structured
environment.
 SWOT
A Good framework to see how one is positioned – where you are (internal)
and will help you identify where you could go (external)

It can be used across a range of things – from an initiative , to analyzing a

product , company or even an industry

Strength : what is it that you do particularly well that others don’t? and is
important to the customer.

Weakness : what do your competitors do better than you? And is

important to customers in value creation.

Opportunity : evaluating and identifying external factors/ trends that have

a positive impact ( consumers more concerned about environment –
sustainability; Double Income – no time for cooking)
Threat : as above that have a negative impact (supply chain problems, shift
in market requirements, changes to current laws and regulations, and so
on)
 Zara SWOT
One of the biggest clothing companies in the world

Reference : mktoolboxsuite.com
 Coco Cola - SWOT
A total beverage company offering over 500 brands in 200 countries / territories

Reference : mktoolboxsuite.com
 Ansoff Matrix
• Market Penetration : expanding sales in existing market.
Read increased market share – through offers/
promotions/ marketing
• Product Development : A product development strategy is
centered around developing new and improved products
for an existing customer base.
• Market Development : enter new markets with existing
products. New markets can be different geographic
locations or new customer segments
• Diversification : New New. It can be related or unrelated.
Related diversification is when a company stays within a
familiar market or extends its product offerings while
keeping common similarities
McDonald’s
ID Foods / OLA
Ola City Taxi
Ola Outstation
Ola foods
Ola Rental
Ola Corporate
Ola Cars
OlaDash
OlaDrive
Ola Electric
Oladash
OlaMoney
Ola In UK, Australia, NZ
Porter’s Force Analysis
The Job of the strategist is to understand and cope with
competition.

Competition for profit goes beyond established industry :

customers, suppliers, potential entrants, and substitute
products.

The extended rivalry that results from all five forces defines an
industry’s structure and shapes the nature of competitive
interaction within an industry.

Industry structure drives competition and profitability.

Understanding the competitive forces, and their underlying

causes, reveals the roots of an industry’s current profitability
while providing a framework for anticipating an influencing
competition (and profitability) over time.
Competitor Rivalry

Focusing on these aspects below you can determine how

competitive and profitable the industry is.
• How many competitors do you have?
• who they are? Are they direct competitors?
• What are their strengths and weaknesses?
• What’s the quality of their products and services when
compared to yours?
Threat of substitute products
Determine how easily your customers can find a substitute product. If
there are substitutes that are cheaper and can be easily purchased, that
may weaken your stance.
• How many substitutes are in the market?
• What’s their quality and price?
• How easily can your customers find them?
• What would it cost them to switch to a substitute?
Threat of new entrants
Determine how easy it is to enter and establish a business in the
industry you are competing in. If an industry is profitable and only
has few barriers to enter, new companies can easily establish
themselves posing a threat to you. Focus on

• How easy it is for a new business to get established in your

industry?
• How much would it cost?
• What are the rules and regulations? Legal barriers?
• Is it easy to get access to suppliers and distributors?
Buyer power
How much power do your customers have over you? They have
the ability to drive prices low and demand higher-quality products.
Here you should focus on
• How many buyers are there?
• What’s the size of their orders?
• How powerful are they? Are they powerful enough to dictate
terms to you?
• How much would it cost them to switch from you to another
product?
Supplier power
Determine the power suppliers have to increase their prices or
provide low-quality material which in turn will affect your product
or service. Focus on
• How many potential suppliers are in the market?
• How scarce are the material they provide?
• How expensive would it be to switch from one supplier to the
other?
• Can you find substitute material? How costly are they?
The configuration of the five forces
The configuration of the five forces differs by industry- commercial aircrafts, movie
theater industry.
• The strongest competitive force or forces determine the profitability of an industry
and become the most important to strategy formulation.
• Savvy customers can force down prices by playing you and your rivals against one
another.
• Powerful suppliers may constrain your profits if they charge higher prices.
• Aspiring entrants, armed with you new capacity and hungry for market share, can
ratchet up the investment required for you to stay in the game.
• Substitute offerings can lure customers away.

By analyzing all five competitive forces, you gain a complete pictures of what’s
influencing profitability in your industry.
 Rivalry is especially destructive to profitability if it gravitates solely to
price because price competition transfers profits directly from an
industry to its customers.

The five competitive forces determine how the economic value

created by the industry is divided—how much is retained by
companies in the industry versus bargained away by customers
and suppliers, limited by substitutes, or constrained by potential
new entrants.