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Strategic Planning

Vision, positioning, competitive strategy, and long-term planning

Strategic Planning Skill

Expert frameworks and best practices for business strategy development, competitive analysis, and growth planning

Core Principles

Data-Driven: Strategy based on market research and competitive intelligence
Actionable: Clear priorities with measurable objectives
Realistic: Aligned with resources and capabilities
Adaptive: Built for changing market conditions
Stakeholder-Aligned: Considers all key constituencies

Part 1: Strategic Frameworks

1.1 Porter's Five Forces Analysis

Purpose: Understand industry structure and competitive dynamics

The Five Forces:

Threat of New Entrants
- Barriers to entry: Capital requirements, economies of scale, patents, regulations
- Brand loyalty and switching costs
- Access to distribution channels
- Government policy
- Expected retaliation from incumbents
Bargaining Power of Suppliers
- Supplier concentration vs. industry concentration
- Switching costs for suppliers and buyers
- Availability of substitutes for supplier products
- Forward integration potential
- Importance of volume to suppliers
Bargaining Power of Buyers
- Buyer concentration vs. industry concentration
- Switching costs for buyers
- Backward integration potential
- Price sensitivity
- Product differentiation
Threat of Substitute Products
- Relative price-performance of substitutes
- Switching costs
- Buyer propensity to substitute
- Emerging technologies
Rivalry Among Existing Competitors
- Number and diversity of competitors
- Industry growth rate
- Fixed vs. variable costs
- Product differentiation
- Exit barriers
- Strategic stakes

Analysis Template:

## Five Forces Analysis: [Industry]

### 1. Threat of New Entrants: [High/Medium/Low]
- Key barriers: [List]
- Assessment: [Why high/medium/low]
- Strategic implication: [What it means for us]

### 2. Supplier Power: [High/Medium/Low]
- Key factors: [List]
- Assessment: [Analysis]
- Strategic implication: [Actions needed]

### 3. Buyer Power: [High/Medium/Low]
- Key factors: [List]
- Assessment: [Analysis]
- Strategic implication: [Actions needed]

### 4. Threat of Substitutes: [High/Medium/Low]
- Key substitutes: [List]
- Assessment: [Analysis]
- Strategic implication: [Actions needed]

### 5. Competitive Rivalry: [Intense/Moderate/Weak]
- Key factors: [List]
- Assessment: [Analysis]
- Strategic implication: [Actions needed]

## Overall Industry Attractiveness: [High/Medium/Low]
## Strategic Recommendations: [Key actions]

1.2 SWOT Analysis

Purpose: Assess internal capabilities and external environment

Framework:

Strengths (Internal, Positive):

What do we do well?
What unique resources do we have?
What do customers see as our strengths?
What competitive advantages do we have?

Weaknesses (Internal, Negative):

What could we improve?
Where do we lack resources?
What do customers see as weaknesses?
What factors lose us sales?

Opportunities (External, Positive):

What market trends favor us?
What gaps exist in the market?
What technology changes help us?
What regulatory changes benefit us?

Threats (External, Negative):

What obstacles do we face?
What are competitors doing?
What technology threatens us?
What regulatory changes hurt us?

SWOT to Strategy Matrix:

SO (Strength-Opportunity): Leverage strengths to capture opportunities
WO (Weakness-Opportunity): Overcome weaknesses to pursue opportunities
ST (Strength-Threat): Use strengths to defend against threats
WT (Weakness-Threat): Defensive strategies to minimize weaknesses and threats

Best Practices:

Be specific (not "good brand" but "95% brand recognition in 25-34 age group")
Prioritize (top 3-5 in each quadrant)
Be honest about weaknesses
Link to data where possible
Update quarterly

Purpose: Portfolio analysis for resource allocation

Four Quadrants:

Stars (High Growth, High Share)
- Market leaders in growing markets
- Require investment to maintain position
- Future cash cows
- Strategy: Invest heavily
Cash Cows (Low Growth, High Share)
- Market leaders in mature markets
- Generate excess cash
- Fund other ventures
- Strategy: Harvest/maintain
Question Marks (High Growth, Low Share)
- Small players in growing markets
- Require cash to grow
- Uncertain futures
- Strategy: Invest selectively or divest
Dogs (Low Growth, Low Share)
- Weak position in mature markets
- Use more resources than generate
- Strategy: Divest or reposition

Analysis Template:

## BCG Matrix: [Company Portfolio]

### Stars
- [Product/Business Unit]: Market share X%, Growth rate Y%
  - Investment needed: $Z
  - Strategic priority: High
  - Timeline: 3-5 years

### Cash Cows
- [Product/Business Unit]: Market share X%, Growth rate Y%
  - Cash generation: $Z annually
  - Strategic priority: Maintain
  - Use cash for: [Stars/Question Marks]

### Question Marks
- [Product/Business Unit]: Market share X%, Growth rate Y%
  - Decision: Invest or divest
  - Investment required: $Z
  - Timeline to Star status: X years
  - Probability of success: Y%

### Dogs
- [Product/Business Unit]: Market share X%, Growth rate Y%
  - Recommendation: Divest/Reposition
  - Timeline: X months
  - Expected proceeds: $Z

## Portfolio Strategy
- Overweight in: [Quadrant]
- Underweight in: [Quadrant]
- Rebalancing actions: [List]

1.4 Ansoff Matrix (Growth Strategy)

Purpose: Identify growth opportunities

Four Growth Strategies:

Market Penetration (Existing Products, Existing Markets)
- Increase market share
- Increase usage by existing customers
- Win competitors' customers
- Risk: Low
- Examples: Promotions, loyalty programs, better distribution
Market Development (Existing Products, New Markets)
- New geographic markets
- New market segments
- New distribution channels
- Risk: Medium
- Examples: International expansion, B2B to B2C
Product Development (New Products, Existing Markets)
- New features
- New product lines
- Innovation
- Risk: Medium
- Examples: Product variations, next-gen products
Diversification (New Products, New Markets)
- Related diversification (leverage capabilities)
- Unrelated diversification (portfolio approach)
- Risk: High
- Examples: New business lines, acquisitions

Decision Framework:

Start with Market Penetration (lowest risk)
↓ If market saturated
Move to Market Development or Product Development (medium risk)
↓ If core market exhausted
Consider Diversification (highest risk, highest reward)

1.5 Blue Ocean Strategy

Purpose: Create uncontested market space

Key Concepts:

Red Ocean (Compete in existing market):

Compete in existing market space
Beat the competition
Exploit existing demand
Value-cost trade-off

Blue Ocean (Create new market):

Create uncontested market space
Make competition irrelevant
Create and capture new demand
Break value-cost trade-off

Four Actions Framework:

Eliminate: What factors can be eliminated that industry has taken for granted?
Reduce: What factors can be reduced well below industry standard?
Raise: What factors should be raised well above industry standard?
Create: What factors should be created that industry has never offered?

Strategy Canvas:

Plot your offering vs. competitors on key factors
Identify differentiation opportunities
Find value innovation points

Example - Cirque du Soleil:

Eliminated: Star performers, animal shows, multiple rings
Reduced: Fun and humor, thrill and danger
Raised: Unique venues, artistic music and dance
Created: Theme, refined environment, multiple productions

Part 2: Vision, Mission, and Values

2.1 Vision Statement

Purpose: Aspirational future state (3-10 years out)

Characteristics:

Inspirational and motivating
Clear and memorable
Future-oriented
Stretch goal (ambitious but achievable)
1-2 sentences

Template:

To [action verb] [what] [for whom] by [timeframe], becoming [position/recognition]

Examples:

Microsoft: "A computer on every desk and in every home"
Disney: "To make people happy"
Tesla: "To accelerate the world's transition to sustainable energy"

Questions to Ask:

What do we aspire to become?
What impact do we want to have?
What legacy do we want to leave?
Where do we see ourselves in 10 years?

2.2 Mission Statement

Purpose: Define current purpose and how we operate today

Characteristics:

Clearly defines purpose
Describes what we do
Identifies who we serve
Explains how we create value
Present-tense
2-3 sentences

Template:

We [action] by [how] to [whom] so that [benefit/outcome]

Examples:

Amazon: "To be Earth's most customer-centric company"
Google: "To organize the world's information and make it universally accessible"
Nike: "To bring inspiration and innovation to every athlete in the world"

Mission Statement Checklist:

What business are we in?
Who are our customers?
What value do we provide?
How do we provide it?
What makes us different?

2.3 Core Values

Purpose: Guiding principles for decisions and behavior

Characteristics:

3-7 core values
Authentic (actually practiced)
Specific (not generic)
Actionable (guide behavior)
Enduring (won't change)

Development Process:

Identify themes from company history
Survey stakeholders on what's important
Identify behaviors that made company successful
Test against real decisions
Refine and define each value

Format:

Value Name: One Word or Short Phrase
Definition: What it means to us (1-2 sentences)
In Practice: How it guides our actions (examples)

Examples - Netflix:

Judgment: We make wise decisions despite ambiguity
Communication: We are candid, authentic, and articulate
Courage: We say what we think when it's in the best interest
Impact: We accomplish amazing amounts of important work
Curiosity: We learn rapidly and eagerly

Part 3: OKR and KPI Frameworks

3.1 OKRs (Objectives and Key Results)

Purpose: Set ambitious goals with measurable outcomes

Structure:

Objective: Qualitative, inspirational goal
  Key Result 1: Quantitative, measurable outcome
  Key Result 2: Quantitative, measurable outcome
  Key Result 3: Quantitative, measurable outcome

Objective Characteristics:

Qualitative and inspirational
Memorable and engaging
Time-bound (usually quarterly or annual)
Ambitious (60-70% confidence in achieving)

Key Result Characteristics:

Quantitative and measurable
Verifiable (yes/no, achieved or not)
Outcome-focused (not activities)
Specific numbers or milestones
3-5 per objective

Scoring:

0.0 - 0.3: Failed to make progress
0.4 - 0.6: Made progress but fell short
0.7 - 1.0: Delivered (0.7 is success, 1.0 is exceptional)

OKR Template:

## Q1 2024 OKRs

### Company-Level OKRs

**Objective 1**: Establish market leadership in AI-powered analytics

Key Results:
- [ ] KR1: Achieve 40% market share in enterprise segment (Current: 25%)
- [ ] KR2: Net Promoter Score of 70+ (Current: 55)
- [ ] KR3: 50,000 active users by end of Q1 (Current: 30,000)
- [ ] KR4: $10M ARR with 130% net retention (Current: $6M, 115%)

Score: 0.0 (Start of quarter)

**Objective 2**: Build a world-class product team

Key Results:
- [ ] KR1: Hire 10 senior engineers (0/10 hired)
- [ ] KR2: Engineering satisfaction score 4.5/5 (Current: 3.8)
- [ ] KR3: Reduce sprint cycle time from 2 weeks to 1 week
- [ ] KR4: Ship 3 major product releases

Score: 0.0 (Start of quarter)

### Department OKRs
[Aligned with company OKRs, cascaded down]

Best Practices:

Top-down and bottom-up (40% from leadership, 60% from teams)
Transparent (everyone sees everyone's OKRs)
Weekly check-ins
Quarterly retrospectives
Don't tie to compensation (encourages sandbagging)

3.2 KPIs (Key Performance Indicators)

Purpose: Monitor ongoing business health

Types of KPIs:

Financial KPIs:

Revenue Growth Rate
Gross Margin
Net Profit Margin
EBITDA
Cash Flow
Burn Rate
CAC (Customer Acquisition Cost)
LTV (Lifetime Value)
LTV:CAC Ratio (should be >3:1)

Customer KPIs:

NPS (Net Promoter Score)
CSAT (Customer Satisfaction)
Churn Rate
Retention Rate
Expansion Revenue
Customer Lifetime Value

Product KPIs:

DAU/MAU (Daily/Monthly Active Users)
Engagement Rate
Feature Adoption Rate
Time to Value
Product Qualified Leads (PQLs)

Sales & Marketing KPIs:

MQLs (Marketing Qualified Leads)
SQLs (Sales Qualified Leads)
Conversion Rates (Lead→MQL→SQL→Customer)
Sales Cycle Length
Win Rate
Average Deal Size

Operations KPIs:

Cycle Time
Quality Metrics (defect rate, etc.)
On-Time Delivery
Resource Utilization
Employee Satisfaction

KPI Dashboard Template:

## Company Dashboard - [Month Year]

### Financial Health
| Metric | Current | Target | Previous | Trend |
|--------|---------|--------|----------|-------|
| MRR | $500K | $600K | $450K | ↑ +11% |
| Gross Margin | 78% | 80% | 76% | ↑ +2% |
| Burn Rate | $300K | $250K | $350K | ↑ -14% |
| Runway | 18 mo | 24 mo | 15 mo | ↑ +3mo |

### Customer Metrics
| Metric | Current | Target | Previous | Trend |
|--------|---------|--------|----------|-------|
| Active Customers | 250 | 300 | 220 | ↑ +14% |
| NPS | 65 | 70 | 60 | ↑ +5 |
| Churn Rate | 3.5% | 2% | 4% | ↑ -0.5% |
| LTV:CAC | 4.2:1 | 5:1 | 3.8:1 | ↑ |

### Product Metrics
| Metric | Current | Target | Previous | Trend |
|--------|---------|--------|----------|-------|
| DAU/MAU | 35% | 40% | 32% | ↑ +3% |
| Feature X Adoption | 45% | 60% | 40% | ↑ +5% |
| Time to Value | 7 days | 5 days | 10 days | ↑ -3d |

### Sales & Marketing
| Metric | Current | Target | Previous | Trend |
|--------|---------|--------|----------|-------|
| MQLs | 500 | 600 | 450 | ↑ +11% |
| Conversion (MQL→SQL) | 25% | 30% | 22% | ↑ +3% |
| Win Rate | 30% | 35% | 28% | ↑ +2% |
| Avg Deal Size | $25K | $30K | $23K | ↑ +9% |

🔴 Red = Below target
🟡 Yellow = Near target
🟢 Green = At or above target

Part 4: Market Entry Strategies

4.1 Market Entry Modes

1. Exporting

Direct exporting (own sales force)
Indirect exporting (through distributors)
Pros: Low risk, low investment
Cons: Limited control, lower margins

2. Licensing

Grant rights to foreign company
Pros: Low risk, passive income
Cons: Loss of control, creating future competitor

3. Franchising

License business model
Pros: Rapid expansion, local knowledge
Cons: Quality control challenges, shared profits

4. Joint Venture

Partner with local company
Pros: Shared risk, local expertise
Cons: Potential conflicts, profit sharing

5. Strategic Alliance

Cooperative agreement without equity
Pros: Flexibility, complementary strengths
Cons: Limited commitment, coordination challenges

6. Wholly-Owned Subsidiary

Full ownership (greenfield or acquisition)
Pros: Full control, full profits
Cons: High risk, high investment

Entry Mode Selection Matrix:

| Factor | Weight | Exporting | Licensing | JV | Acquisition |
|--------|--------|-----------|-----------|-----|-------------|
| Market knowledge needed | High | 2 | 4 | 5 | 5 |
| Speed to market | High | 4 | 5 | 3 | 4 |
| Capital availability | Medium | 5 | 5 | 3 | 1 |
| Risk tolerance | Medium | 4 | 5 | 3 | 2 |
| Control importance | High | 2 | 1 | 3 | 5 |
| **Weighted Score** | - | 3.2 | 3.8 | 3.4 | 3.4 |

Scale: 1 (Poor fit) to 5 (Excellent fit)

4.2 Market Entry Analysis Framework

Step 1: Market Attractiveness

Market size and growth rate
Competitive intensity
Regulatory environment
Infrastructure quality
Economic stability
Cultural distance

Step 2: Competitive Position Assessment

Resource availability
Core competencies fit
Brand strength in new market
Supply chain capabilities
Local partnerships available

Step 3: Entry Barriers

Tariffs and trade barriers
Local regulations
Capital requirements
Distribution access
Brand recognition needed
Local partnerships required

Step 4: Risk Assessment

Political risk
Economic risk
Currency risk
Operational risk
Reputational risk

Market Entry Decision Template:

## Market Entry Analysis: [Country/Region]

### Market Attractiveness (Score: X/10)
- Market Size: $XB, Growing at Y% annually
- Competition: [Assessment]
- Regulations: [Assessment]
- Overall: [High/Medium/Low]

### Competitive Position (Score: X/10)
- Our Strengths: [List]
- Our Weaknesses: [List]
- Local Competition: [Analysis]
- Overall: [Strong/Moderate/Weak]

### Entry Barriers (Score: X/10)
- Key Barriers: [List]
- Mitigating Factors: [List]
- Overall: [Low/Medium/High]

### Risk Assessment (Score: X/10)
- Political Risk: [Low/Med/High]
- Economic Risk: [Low/Med/High]
- Operational Risk: [Low/Med/High]
- Overall Risk: [Acceptable/Concerning/Prohibitive]

### Recommended Entry Mode
**Mode**: [Selected mode]
**Rationale**: [Why this mode]
**Timeline**: [Phased approach]
**Investment Required**: $X
**Expected ROI**: X% over Y years
**Key Success Factors**: [List]

### Go/No-Go Decision: [GO / NO-GO / DEFER]
**Reasoning**: [Key factors in decision]

Part 5: M&A Evaluation Frameworks

5.1 M&A Strategic Rationale

Valid Reasons for M&A:

Market Power
- Increase market share
- Reduce competition
- Increase pricing power
Synergies
- Revenue synergies (cross-sell, market access)
- Cost synergies (economies of scale, eliminate redundancies)
- Financial synergies (tax benefits, lower cost of capital)
Growth
- Access new markets
- Acquire new products/technology
- Expand capabilities
Risk Reduction
- Diversification
- Vertical integration (secure supply chain)

Invalid Reasons (Red Flags):

Empire building (CEO ego)
Following competitors blindly
To use excess cash (there are better uses)
To boost short-term earnings

5.2 Target Identification and Screening

Ideal Target Profile:

## Target Company Profile

### Strategic Fit
- [ ] Aligns with corporate strategy
- [ ] Fills capability gaps
- [ ] Provides market access
- [ ] Complements product portfolio
- [ ] Cultural compatibility

### Financial Profile
- [ ] Revenue: $X - $Y
- [ ] Growth rate: >Z%
- [ ] EBITDA margin: >W%
- [ ] Manageable debt levels
- [ ] Clean financial history

### Market Position
- [ ] #1 or #2 in their niche
- [ ] Defensible competitive advantages
- [ ] Strong customer relationships
- [ ] Quality brand/reputation

### Operational Characteristics
- [ ] Scalable business model
- [ ] Strong management team
- [ ] Modern technology/systems
- [ ] Efficient operations

5.3 Valuation Methods

1. Comparable Company Analysis (Trading Multiples)

Enterprise Value = EBITDA × Industry Multiple
or
Equity Value = Revenue × Industry Multiple

2. Precedent Transaction Analysis

Value = Recent M&A multiples in same industry
Typical premium: 20-30% over market price

3. Discounted Cash Flow (DCF)

Present Value = Σ (Future Cash Flows / (1 + Discount Rate)^n)
Terminal Value = Final Year Cash Flow × Exit Multiple
Enterprise Value = PV + Terminal Value - Debt

4. Asset-Based Valuation

Value = Total Assets - Total Liabilities
or
Liquidation Value = Assets at fire-sale prices - Liabilities

Valuation Template:

## Target Valuation: [Company Name]

### Trading Multiples (Comparable Companies)
Industry Average EV/EBITDA: 8.5x
Target EBITDA: $10M
**Implied Value: $85M**

### Precedent Transactions
Recent deals in sector: 9.5x - 11.0x EBITDA
Average premium: 25%
**Implied Range: $95M - $110M**

### DCF Analysis
Projected 5-year FCF: $8M, $10M, $12M, $14M, $15M
Terminal Value (Exit at 10x): $150M
WACC: 12%
**NPV: $92M**

### Valuation Summary
| Method | Low | Mid | High |
|--------|-----|-----|------|
| Trading Multiples | $75M | $85M | $95M |
| Precedent Transactions | $95M | $103M | $110M |
| DCF | $85M | $92M | $100M |
| **Weighted Average** | **$85M** | **$93M** | **$102M** |

### Recommended Offer Range: $88M - $96M
**Walk-Away Price: $105M**

5.4 Due Diligence Framework

Financial Due Diligence:

Historical financials (3-5 years)
Quality of earnings
Working capital analysis
Debt and obligations
Tax liabilities
Revenue concentration
Customer contracts

Legal Due Diligence:

Corporate structure
Material contracts
Intellectual property
Litigation and disputes
Regulatory compliance
Employment agreements
Environmental liabilities

Operational Due Diligence:

Business model validation
Key processes and systems
Technology infrastructure
Supply chain dependencies
Capacity and scalability
Quality control
Key personnel

Commercial Due Diligence:

Market position validation
Customer satisfaction
Competitive landscape
Growth opportunities
Sales pipeline
Brand strength

Due Diligence Checklist:

## Due Diligence Checklist: [Target Company]

### Financial (CFO Lead)
- [ ] 3-year audited financials reviewed
- [ ] Quality of earnings analysis complete
- [ ] Working capital normalized
- [ ] Debt schedule verified
- [ ] Tax returns reviewed
- [ ] Revenue recognition validated
- [ ] Customer concentration assessed
- [ ] **Red Flags**: [None / List]

### Legal (General Counsel Lead)
- [ ] Corporate documents reviewed
- [ ] Material contracts identified
- [ ] IP portfolio assessed
- [ ] Litigation search complete
- [ ] Regulatory compliance verified
- [ ] Employment agreements reviewed
- [ ] Environmental review complete
- [ ] **Red Flags**: [None / List]

### Operational (COO Lead)
- [ ] Process documentation reviewed
- [ ] Technology stack assessed
- [ ] Key systems tested
- [ ] Supply chain mapped
- [ ] Capacity analysis complete
- [ ] Quality metrics reviewed
- [ ] Key personnel identified
- [ ] **Red Flags**: [None / List]

### Commercial (CMO Lead)
- [ ] Customer interviews conducted (top 10)
- [ ] Competitive position validated
- [ ] Market analysis updated
- [ ] Sales pipeline reviewed
- [ ] Pricing power assessed
- [ ] Brand perception evaluated
- [ ] **Red Flags**: [None / List]

### Overall Assessment
**Go/No-Go**: [GO / NO-GO / RENEGOTIATE]
**Key Risks**: [List top 3]
**Deal-Breakers**: [Any identified]
**Value Adjustment**: [If any]

5.5 Synergy Analysis

Revenue Synergies:

| Opportunity | Year 1 | Year 2 | Year 3 | Total |
|-------------|--------|--------|--------|-------|
| Cross-sell to their customers | $1M | $3M | $5M | $9M |
| Up-sell our products | $0.5M | $2M | $4M | $6.5M |
| Geographic expansion | $0.5M | $1.5M | $3M | $5M |
| **Total Revenue Synergies** | **$2M** | **$6.5M** | **$12M** | **$20.5M** |

Probability-Adjusted (70% success): $14.4M over 3 years

Cost Synergies:

| Opportunity | Annual Savings | One-Time Cost | Net 3-Year |
|-------------|----------------|---------------|------------|
| Eliminate redundant positions | $2M | $0.5M | $5.5M |
| Consolidate offices | $0.5M | $1M | $0.5M |
| IT systems integration | $0.3M | $0.5M | $0.4M |
| Procurement savings | $0.4M | $0.1M | $1.1M |
| **Total Cost Synergies** | **$3.2M** | **$2.1M** | **$7.5M** |

Probability-Adjusted (85% success): $6.4M over 3 years

Synergy Valuation:

Total Synergies (PV): $18M
Less: Integration Costs: $5M
Less: Risk Adjustment (30%): $3.9M
Net Synergy Value: $9.1M

Maximum Premium Justified by Synergies: $9.1M

Part 6: Business Model Canvas

Purpose: Visualize and design business model

Nine Building Blocks:

1. Customer Segments

Who are we creating value for?

Mass market / Niche market / Segmented / Diversified / Multi-sided

2. Value Propositions

What problem are we solving?

Newness, Performance, Customization, Design, Brand, Price, Cost reduction, Risk reduction, Accessibility, Convenience

3. Channels

How do we deliver value?

Direct (sales force, web sales, owned stores)
Indirect (partner stores, wholesaler)

4. Customer Relationships

How do we interact with each segment?

Personal assistance, Dedicated personal, Self-service, Automated, Communities, Co-creation

5. Revenue Streams

How do we generate revenue?

Asset sale, Usage fee, Subscription, Lending/Renting, Licensing, Brokerage, Advertising

6. Key Resources

What assets do we need?

Physical, Intellectual, Human, Financial

7. Key Activities

What must we do?

Production, Problem solving, Platform/Network

8. Key Partnerships

Who helps us?

Strategic alliances, Joint ventures, Suppliers, Coopetition

9. Cost Structure

What are our main costs?

Fixed costs, Variable costs, Economies of scale, Economies of scope

Business Model Canvas Template:

## Business Model Canvas: [Company Name]

┌─────────────────┬─────────────────┬─────────────────┬─────────────────┐
│ Key Partners    │ Key Activities  │ Value           │ Customer        │
│                 │                 │ Propositions    │ Relationships   │
│ • Partner 1     │ • Activity 1    │                 │                 │
│ • Partner 2     │ • Activity 2    │ • Value prop 1  │ • Relationship 1│
│ • Partner 3     │ • Activity 3    │ • Value prop 2  │ • Relationship 2│
│                 │                 │ • Value prop 3  │                 │
│                 ├─────────────────┤                 ├─────────────────┤
│                 │ Key Resources   │                 │ Channels        │
│                 │                 │                 │                 │
│                 │ • Resource 1    │                 │ • Channel 1     │
│                 │ • Resource 2    │                 │ • Channel 2     │
│                 │ • Resource 3    │                 │ • Channel 3     │
├─────────────────┴─────────────────┴─────────────────┤                 │
│ Cost Structure                                      │ Customer        │
│                                                     │ Segments        │
│ • Cost driver 1                                     │                 │
│ • Cost driver 2                                     │ • Segment 1     │
│ • Cost driver 3                                     │ • Segment 2     │
│                                                     │ • Segment 3     │
│                                                     ├─────────────────┤
│                                                     │ Revenue Streams │
│                                                     │                 │
│                                                     │ • Stream 1: $X  │
│                                                     │ • Stream 2: $Y  │
│                                                     │ • Stream 3: $Z  │
└─────────────────────────────────────────────────────┴─────────────────┘

Part 7: Competitive Positioning

7.1 Generic Competitive Strategies (Porter)

Three Generic Strategies:

Cost Leadership
- Be the low-cost producer
- Compete on price
- High volume, low margin
- Examples: Walmart, Southwest Airlines
Differentiation
- Offer unique value
- Compete on features/quality
- Premium pricing
- Examples: Apple, Tesla
Focus (Niche)
- Target specific segment
- Cost focus or differentiation focus
- Deep expertise in niche
- Examples: Ferrari, Lululemon

Strategic Positioning Map:

         │ High Differentiation
         │
    Premium   Differentiated
    │         │
────┼─────────┼──────────► Cost
    │         │
    Mass      Low-Cost
    Market    Leader
         │
         │ Low Differentiation

7.2 Competitive Advantage Sources

Sustainable Competitive Advantages:

Proprietary Technology
- Patents, trade secrets
- Examples: Pharma drugs, Tesla batteries
Network Effects
- Value increases with users
- Examples: Facebook, Visa, eBay
Brand / Reputation
- Customer loyalty, premium pricing
- Examples: Coca-Cola, Nike
Switching Costs
- Expensive/difficult to switch
- Examples: SAP, Adobe Creative Suite
Scale Economies
- Lower unit costs at scale
- Examples: Amazon, Costco
Regulatory Licenses
- Government-granted monopolies
- Examples: Utilities, casinos

Advantage Sustainability Test:

Is it valuable? (Does it create value?)
Is it rare? (Do few competitors have it?)
Is it inimitable? (Hard to copy?)
Is it organized? (Can we exploit it?)

7.3 Positioning Statement

Template:

For [target customer]
Who [statement of need or opportunity]
[Product/brand name] is [product category]
That [statement of benefit]
Unlike [competitive alternative]
Our product [statement of primary differentiation]

Example - Tesla:

For affluent, environmentally-conscious drivers
Who want performance without compromising values
Tesla is an electric vehicle
That delivers supercar performance with zero emissions
Unlike traditional luxury cars
Tesla provides cutting-edge technology, over-the-air updates, and a sustainable ownership experience

Part 8: Scenario Planning

Purpose: Prepare for multiple possible futures

Process:

Step 1: Identify Focal Issue

What decision needs to be made?
What time horizon matters?

Step 2: Key Driving Forces

Economic trends
Technological changes
Regulatory shifts
Social/demographic changes
Competitive dynamics

Step 3: Critical Uncertainties

Which forces are most uncertain?
Which have highest impact?
Typically: 2 dimensions create 4 scenarios

Step 4: Develop Scenarios

Create plausible, distinct futures
Name each scenario memorably
Develop detailed narratives

Step 5: Implications & Strategies

What does each scenario mean for us?
What strategies work across scenarios?
What are scenario-specific actions?

Scenario Framework Template:

## Scenario Planning: [Topic]
**Time Horizon**: [Year]

### Critical Uncertainties
1. [Uncertainty 1]: Will [X] happen? (High impact, High uncertainty)
2. [Uncertainty 2]: Will [Y] accelerate? (High impact, High uncertainty)

### Four Scenarios

#### Scenario A: [Memorable Name]
**Uncertainty 1**: [Outcome A]
**Uncertainty 2**: [Outcome A]

**Narrative**: [Story of how this future unfolds]

**Implications for Our Business**:
- Market size: [Estimate]
- Key opportunities: [List]
- Major threats: [List]
- Required capabilities: [List]

**Strategic Actions**:
- [ ] Action 1
- [ ] Action 2

---

#### Scenario B: [Memorable Name]
**Uncertainty 1**: [Outcome A]
**Uncertainty 2**: [Outcome B]

[Similar structure...]

---

#### Scenario C: [Memorable Name]
[Similar structure...]

---

#### Scenario D: [Memorable Name]
[Similar structure...]

---

### Robust Strategies (Work across all scenarios)
1. [Strategy that works regardless]
2. [Strategy that works regardless]
3. [Strategy that works regardless]

### Contingent Strategies (Scenario-specific)
| Trigger Signal | Action | Timeline |
|----------------|--------|----------|
| If [signal A observed] | Then [action X] | Within [timeframe] |
| If [signal B observed] | Then [action Y] | Within [timeframe] |

### Monitoring Plan
- [ ] Track [leading indicator 1] monthly
- [ ] Review [metric 2] quarterly
- [ ] Reassess scenarios annually

Part 9: Strategic Roadmapping

Purpose: Translate strategy into actionable timeline

Time Horizons:

Horizon 1 (0-12 months): Optimize core business
Horizon 2 (1-3 years): Build emerging opportunities
Horizon 3 (3-5 years): Create future options

Roadmap Structure:

## Strategic Roadmap: [Company Name]
**Planning Period**: [Year 1 - Year 3]

### Horizon 1: Optimize Core (Next 12 Months)
**Objective**: Strengthen foundation and generate cash

**Q1 2024**:
- Launch [Product Enhancement]
- Expand sales team from 5 to 10 reps
- Implement CRM system
- Target: $2M revenue, 20% growth

**Q2 2024**:
- Enter [Adjacent Market]
- Achieve profitability
- Launch customer success program
- Target: $2.5M revenue, positive EBITDA

**Q3 2024**:
- Release [Version 2.0]
- Open second office
- Hire VP of Marketing
- Target: $3M revenue, 15% margin

**Q4 2024**:
- Strategic partnership with [Partner]
- Year-end: $11M total revenue, Series A fundraise

---

### Horizon 2: Emerging Opportunities (Years 2-3)
**Objective**: Build next-generation offerings

**Year 2 (2025)**:
- Develop [New Product Line]
- Expand internationally (UK, Germany)
- Acquire complementary startup
- Target: $20M revenue, 50% from new products

**Year 3 (2026)**:
- Launch [Platform Version]
- Establish marketplace/ecosystem
- Strategic partnership with enterprise player
- Target: $35M revenue, market leader in niche

---

### Horizon 3: Future Options (Years 4-5)
**Objective**: Position for transformational growth

**Year 4-5 (2027-2028)**:
- Explore [Adjacent Industry]
- R&D investment in [Emerging Technology]
- Potential IPO or strategic exit
- Target: $60M+ revenue, category leader

---

### Key Milestones
| Date | Milestone | Owner | Status |
|------|-----------|-------|--------|
| Q1 2024 | Product launch | CPO | ⏳ |
| Q2 2024 | Profitability | CFO | ⏳ |
| Q4 2024 | Series A close | CEO | ⏳ |
| Q2 2025 | International launch | CMO | ⏳ |
| Q4 2025 | Acquisition close | CEO | ⏳ |
| 2026 | Platform launch | CPO | ⏳ |
| 2028 | Liquidity event | Board | ⏳ |

---

### Resource Allocation
| Horizon | % of Resources | Focus |
|---------|---------------|-------|
| H1 (Core) | 70% | Maximize existing business |
| H2 (Emerging) | 20% | Build future growth engines |
| H3 (Future) | 10% | Create options, experiment |

---

### Strategic Themes (Across all horizons)
1. **Customer Obsession**: NPS >70 by 2025
2. **Product Excellence**: Release velocity 2x by 2024
3. **Operational Excellence**: 85%+ gross margin by 2026
4. **Talent & Culture**: Top 10 best places to work by 2027

---

### Dependencies & Risks
| Dependency | Risk if Delayed | Mitigation |
|------------|----------------|------------|
| Series A funding | Delayed expansion | Bootstrap Q1-2, smaller raise |
| Key hire (VP Eng) | Product delays | Engage recruiters now, retention bonus |
| Partnership deal | Market access limited | Direct sales backup plan |

Part 10: Change Management

Purpose: Execute strategy through organizational transformation

Kotter's 8-Step Change Process

Create Urgency
- Share market data showing need
- Highlight competitor threats
- Demonstrate burning platform
Build Guiding Coalition
- Assemble leadership team
- Include diverse perspectives
- Ensure authority and influence
Form Strategic Vision
- Clear picture of future
- Sensible strategy to achieve it
- Easy to communicate
Enlist Volunteer Army
- Communicate vision broadly
- Inspire and engage employees
- Create champions throughout org
Enable Action by Removing Barriers
- Remove obstacles
- Change systems and structures
- Empower broad-based action
Generate Short-Term Wins
- Plan for visible wins
- Create early successes
- Recognize and reward progress
Sustain Acceleration
- Use credibility to change systems
- Promote and develop change leaders
- Reinvigorate with new projects
Institute Change
- Articulate connections between behaviors and success
- Develop means to ensure leadership development
- Embed in culture

Change Communication Plan

What to Communicate:

Why we're changing (burning platform)
Where we're going (vision)
How we'll get there (strategy)
What's in it for me (individual impact)
What happens next (timeline)

Communication Vehicles:

Town halls (for inspiration)
Team meetings (for discussion)
1-on-1s (for individual concerns)
Email updates (for consistency)
Slack/Teams (for questions)
Dashboard (for progress)

Frequency:

Major milestones: Town hall
Weekly: Email update
Monthly: Team meetings
Quarterly: Strategy review

Best Practices Checklist

Strategy Development

Based on deep market and competitive analysis
Aligned with company capabilities and resources
Clear choices made (what NOT to do)
Stakeholder buy-in achieved
Risk factors identified and mitigated
Success metrics defined
Realistic timeline with milestones

Vision & Mission

Vision is inspirational and future-oriented
Mission is clear and action-oriented
Values are authentic and practiced
Communicable and memorable
Aligned throughout organization