Strategy Framework
How to evaluate markets, competitive dynamics, and make sharp strategic recommendations.
When to Use This Framework
Use this framework for: market entry decisions, competitive analysis, build vs. buy vs. partner, strategic pivots, and "should Company X do Y?" questions.
The 3Cs — Start Here
Before diving into any strategic analysis, anchor yourself with the 3Cs. These three lenses ensure you understand the context before making recommendations.
Company
What are the company's core strengths, capabilities, and strategic assets?
Customers
Who are the target customers, and what do they value?
Competitors
Who else is competing for this customer and use case?
The 3Cs give you the foundation. Use Porter's Five Forces and SWOT for deeper analysis where needed.
SWOT Analysis
A SWOT is a fast, structured way to surface the most important factors before making a recommendation.
Strengths: Internal advantages the company can leverage (brand, distribution, technology, talent).
Weaknesses: Internal gaps or liabilities (missing capabilities, high costs, slow execution).
Opportunities: External trends or market gaps that favor action (growing market, competitor stumbling, regulatory change).
Threats: External risks that could undermine success (strong incumbents, regulatory headwinds, commoditization).
Use SWOT to structure your argument, not as a rote checklist. The goal is to surface the 2-3 most important factors — not list everything possible.
The 4-Step Strategy Framework
Step 1: Understand the Opportunity
Scope the market. What is the total addressable market (TAM)? What is the growth rate? What unmet needs exist?
Questions to answer:
Step 2: Assess the Competitive Landscape
Use Porter's Five Forces as a lens:
- Existing rivalry: Who are the incumbent competitors? How differentiated are their offerings?
- Threat of new entrants: Are barriers to entry high or low?
- Bargaining power of suppliers: Do you depend on critical third parties?
- Bargaining power of buyers: How much leverage do customers have?
- Threat of substitutes: What alternative solutions exist?
Step 3: Evaluate Strategic Options
Always present multiple options, not just one. Common strategic moves:
- Build: Develop the capability or product internally
- Buy: Acquire a company that already has it
- Partner: Integrate with or distribute through an existing player
- Pass: Focus resources elsewhere
For each option, assess: fit with company strengths (from 3Cs), investment required, time to impact, and execution risk.
Step 4: Make a Recommendation with a Go-to-Market View
Take a clear position. Then add a brief go-to-market perspective — how would the company actually execute?
Recommendation template: "I recommend [option] because [top 2-3 reasons from 3Cs/SWOT]. The main risk is [risk], which we'd mitigate by [mitigation]."
Go-to-market questions to address:
Sustainable Competitive Advantage
The best strategies create durable moats. Evaluate options through the lens of:
- Network effects: Does more usage make the product more valuable?
- Switching costs: How hard is it for customers to leave?
- Economies of scale: Do unit costs fall as you grow?
- Brand: Does a strong brand command a premium?
- Proprietary data or technology: Do you have unique capabilities competitors cannot easily replicate?
Common Mistakes to Avoid
- Skipping the 3Cs and jumping straight to a recommendation
- Recommending without considering trade-offs
- Ignoring the company's existing strengths and weaknesses
- Focusing only on the upside without discussing risks
- Forgetting execution complexity and go-to-market realities
- Not having a clear recommendation at the end