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skills/deep-research/references/industry-frameworks.md
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skills/deep-research/references/industry-frameworks.md
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# Industry Analysis Frameworks
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## Overview
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This guide provides comprehensive frameworks for analyzing industries, markets, and competitive landscapes. These frameworks provide structured approaches to business intelligence and strategic decision-making.
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## Core Analysis Frameworks
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### SWOT Analysis
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**Purpose:** Assess internal strengths and weaknesses alongside external opportunities and threats
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**Structure:**
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```
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Positive Factors Negative Factors
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Internal | Strengths | Weaknesses |
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External | Opportunities | Threats |
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```
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**Implementation Guidelines:**
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**Strengths (Internal, Positive):**
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- What advantages does the company have?
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- What unique resources or capabilities exist?
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- What do competitors see as strengths?
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- What factors drive sales and growth?
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**Weaknesses (Internal, Negative):**
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- What could be improved?
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- What should be avoided?
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- What factors cause losses or problems?
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- What resources are lacking?
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**Opportunities (External, Positive):**
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- What market trends could be exploited?
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- What technological changes create advantages?
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- What regulatory changes benefit the business?
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- What market gaps exist?
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**Threats (External, Negative):**
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- What obstacles does the business face?
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- What are competitors doing that impacts the business?
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- What technological changes threaten the business?
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- What negative market trends exist?
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**TOWS Matrix Integration:**
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- **SO Strategies:** How to use strengths to capitalize on opportunities
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- **WO Strategies:** How to address weaknesses to pursue opportunities
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- **ST Strategies:** How to use strengths to avoid threats
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- **WT Strategies:** How to minimize weaknesses and avoid threats
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### Porter's Five Forces
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**Purpose:** Analyze competitive forces and industry attractiveness
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**The Five Forces:**
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1. **Threat of New Entrants**
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- Barriers to entry (economies of scale, capital requirements)
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- Brand loyalty and customer switching costs
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- Access to distribution channels
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- Government regulations and policies
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- Expected retaliation from existing players
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2. **Bargaining Power of Buyers**
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- Number and concentration of buyers
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- Buyer volume and purchase frequency
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- Price sensitivity and product differentiation
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- Availability of substitute products
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- Cost of switching between suppliers
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3. **Bargaining Power of Suppliers**
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- Number and concentration of suppliers
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- Unique inputs and differentiation
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- Switching costs for buyers
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- Forward integration threat
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- Labor union power and availability
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4. **Threat of Substitute Products**
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- Availability of alternative solutions
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- Relative price and performance of substitutes
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- Buyer willingness to switch
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- Perceived level of product differentiation
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- Technological developments
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5. **Rivalry Among Existing Competitors**
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- Number and size of competitors
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- Industry growth rate
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- Fixed costs and exit barriers
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- Product differentiation
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- Brand loyalty and customer switching costs
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**Analysis Questions:**
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- How intense is the competition in this industry?
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- What are the key barriers to entry?
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- How much power do customers and suppliers have?
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- What substitute products threaten the industry?
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- What factors determine profitability in this industry?
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### PESTLE Analysis
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**Purpose:** Analyze macro-environmental factors affecting business
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**Political Factors:**
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- Government stability and political climate
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- Tax policies and trade regulations
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- Labor laws and employment legislation
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- Environmental regulations and policies
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- Trade restrictions and tariffs
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- Government incentives and subsidies
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**Economic Factors:**
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- Economic growth and GDP trends
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- Interest rates and inflation
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- Exchange rates and currency stability
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- Consumer spending patterns
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- Unemployment rates
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- Business confidence indices
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**Social Factors:**
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- Demographic trends and population changes
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- Cultural attitudes and lifestyle changes
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- Education levels and social mobility
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- Consumer preferences and buying habits
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- Health consciousness and wellness trends
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- Social media influence and communication patterns
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**Technological Factors:**
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- Research and development activity
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- Automation and innovation levels
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- Technological infrastructure
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- Rate of technological change
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- Impact on cost structures
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- New product development capabilities
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**Legal Factors:**
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- Consumer protection laws
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- Employment and labor laws
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- Health and safety regulations
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- Industry-specific regulations
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- Intellectual property laws
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- Data protection and privacy laws
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**Environmental Factors:**
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- Climate change and weather patterns
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- Environmental regulations and policies
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- Sustainability expectations
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- Resource availability and costs
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- Waste disposal and pollution concerns
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- Renewable energy adoption
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### BCG Matrix
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**Purpose:** Analyze product portfolio and resource allocation
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**Four Quadrants:**
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1. **Stars (High Growth, High Market Share)**
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- Market leaders in growing industries
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- Require significant investment
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- Potential for future cash generation
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- Strategy: Invest and maintain market position
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2. **Cash Cows (Low Growth, High Market Share)**
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- Market leaders in mature industries
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- Generate more cash than required
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- Foundation of the business
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- Strategy: Maintain and harvest cash
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3. **Question Marks (High Growth, Low Market Share)**
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- Potential in growing markets
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- Require significant investment
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- Uncertain future performance
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- Strategy: Invest heavily or divest
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4. **Dogs (Low Growth, Low Market Share)**
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- Low market share in mature markets
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- Generate low or negative cash flow
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- Limited growth potential
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- Strategy: Harvest, divest, or liquidate
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## Specialized Analysis Frameworks
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### Value Chain Analysis
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**Purpose:** Identify value-creating activities and competitive advantages
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**Primary Activities:**
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1. **Inbound Logistics**
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- Receiving, storing, and distributing inputs
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- Material handling, inventory control, transportation
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- Supplier relationships and scheduling
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2. **Operations**
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- Transforming inputs into final products
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- Manufacturing, packaging, testing, equipment
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- Process efficiency and quality control
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3. **Outbound Logistics**
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- Collecting, storing, and distributing products
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- Order processing, scheduling, delivery
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- Distribution channels and customer service
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4. **Marketing and Sales**
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- Persuading customers to purchase products
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- Advertising, promotion, pricing, channel selection
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- Sales force management and customer relationships
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5. **Service**
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- Enhancing and maintaining product value
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- Installation, repair, training, customer support
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- Spare parts availability and complaint handling
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**Support Activities:**
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1. **Procurement**
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- Sourcing raw materials and supplies
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- Supplier relationships and negotiation
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- Quality control and cost management
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2. **Technology Development**
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- Research and development activities
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- Process automation and improvement
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- Product design and innovation
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3. **Human Resource Management**
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- Employee recruitment, training, and development
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- Compensation and performance management
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- Organizational culture and relationships
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4. **Firm Infrastructure**
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- General management, planning, finance
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- Legal, accounting, and quality management
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- Organizational structure and systems
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### Blue Ocean Strategy
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**Purpose:** Create uncontested market space and make competition irrelevant
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**Key Concepts:**
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**Value Innovation:**
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- Simultaneous pursuit of differentiation and low cost
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- Creating and capturing new demand
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- Breaking the value-cost trade-off
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- Aligning the whole system of activities
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**Four Actions Framework:**
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1. **Eliminate**
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- Factors that industry takes for granted but should be eliminated
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- Reduce complexity and cost structure
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- Focus on value-creating activities
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2. **Reduce**
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- Factors that should be reduced well below industry standard
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- Identify over-served customers
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- Eliminate waste and inefficiency
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3. **Raise**
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- Factors that should be raised well above industry standard
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- Address customer pain points
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- Create new value propositions
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4. **Create**
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- Factors that industry has never offered
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- Discover new sources of value
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- Reconstruct market boundaries
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**Strategy Canvas:**
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- Visual representation of current strategic landscape
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- Plot competitor factors and value curves
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- Identify opportunities for differentiation
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- Communicate strategic shift internally
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### McKinsey 7S Framework
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**Purpose:** Analyze organizational effectiveness and alignment
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**Hard Elements:**
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1. **Strategy**
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- Plans for allocation of resources
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- Competitive positioning and market approach
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- Response to external changes
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- Sustainable competitive advantages
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2. **Structure**
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- Organizational chart and reporting lines
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- Division of labor and specialization
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- Coordination mechanisms and control systems
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- Decision-making authority and responsibility
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3. **Systems**
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- Formal and informal procedures
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- Performance measurement and evaluation
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- Information systems and communication flows
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- Operational processes and workflows
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**Soft Elements:**
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4. **Shared Values**
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- Core values and organizational culture
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- Mission and vision statements
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- Superordinate goals and beliefs
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- Organizational identity and purpose
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5. **Skills**
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- Dominant attributes and capabilities
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- Core competencies and distinctive abilities
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- Organizational strengths and weaknesses
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- Human capital and talent management
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6. **Style**
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- Leadership approach and management style
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- Employee attitudes and behaviors
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- Organizational climate and atmosphere
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- Communication patterns and norms
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7. **Staff**
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- Employee demographics and characteristics
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- Training and development programs
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- Performance and reward systems
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- Socialization and team integration
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## Market-Specific Frameworks
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### Technology Adoption Lifecycle
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**Purpose:** Understand market adoption patterns for new technologies
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**Adoption Categories:**
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1. **Innovators (2.5%)**
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- Technology enthusiasts and visionaries
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- Risk-takers and early adopters
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- Focus on new capabilities and features
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- Willing to tolerate bugs and limitations
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2. **Early Adopters (13.5%)**
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- Opinion leaders and trendsetters
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- Recognize potential for competitive advantage
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- Willing to invest in new solutions
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- Provide valuable feedback and insights
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3. **Early Majority (34%)**
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- Pragmatists and practical thinkers
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- Focus on proven solutions and ROI
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- Require reference cases and testimonials
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- Critical for mainstream adoption
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4. **Late Majority (34%)**
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- Conservatives and skeptics
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- Focus on risk reduction and reliability
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- Require established standards and support
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- Price-sensitive and risk-averse
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5. **Laggards (16%)**
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- Traditionalists and resistors to change
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- Focus on familiar and proven solutions
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- Require significant pressure to change
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- May never adopt new technologies
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**Chasm Theory:**
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- Critical gap between early adopters and early majority
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- Different buying criteria and decision processes
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- Need for whole product solution and market development
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- Strategic importance of crossing the chasm
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### Customer Lifetime Value (CLV) Framework
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**Purpose:** Analyze customer profitability and relationship value
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**CLV Calculation:**
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```
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CLV = (Average Purchase Value × Purchase Frequency × Customer Lifetime) - Customer Acquisition Cost
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```
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**Key Components:**
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1. **Customer Acquisition**
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- Marketing and sales expenses
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- Lead generation and conversion costs
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- Onboarding and setup costs
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- Channel and partnership expenses
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2. **Customer Retention**
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- Revenue per customer per period
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- Purchase frequency and average order value
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- Customer retention and churn rates
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- Cross-selling and up-selling opportunities
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3. **Customer Lifetime**
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- Average customer relationship duration
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- Retention rates by customer segment
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- Lifetime value trends and patterns
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- Factors affecting customer longevity
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**Strategic Applications:**
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- Customer segmentation and targeting
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- Resource allocation and investment decisions
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- Pricing and value proposition optimization
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- Customer experience improvement initiatives
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### Jobs-to-be-Done (JTBD) Framework
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**Purpose:** Understand customer needs and motivations for product usage
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**Core Concepts:**
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**Job Statement:**
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"When [situation], I want to [motivation], so I can [expected outcome]."
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**Job Dimensions:**
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1. **Functional Jobs**
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- Practical tasks and problems to solve
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- Measurement criteria and success metrics
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- Functional requirements and constraints
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- Alternative solutions and trade-offs
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2. **Emotional Jobs**
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- Feelings and perceptions to manage
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- Social identity and status considerations
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- Personal values and beliefs
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- Emotional responses and reactions
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3. **Social Jobs**
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- How others perceive the customer
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- Social status and group belonging
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- Influence and impact on others
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- Social norms and expectations
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**Job Mapping:**
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- Define the job and desired outcomes
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- Identify constraints and obstacles
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- Map the job process and steps
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- Discover improvement opportunities
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## Implementation Guidelines
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### Framework Selection Criteria
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**Research Objectives:**
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- What specific questions need to be answered?
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- What level of analysis is required?
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- What resources and time are available?
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- Who is the target audience?
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**Industry Characteristics:**
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- Industry structure and dynamics
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- Competitive intensity and market maturity
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- Regulatory environment and constraints
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- Technological complexity and change rate
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**Data Availability:**
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- Accessibility of relevant information
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- Quality and reliability of data sources
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- Time sensitivity of information
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- Analytical capabilities and tools
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### Combining Frameworks
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**Complementary Analysis:**
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- Use multiple frameworks for comprehensive understanding
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- Cross-validate insights across different approaches
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- Identify patterns and consistencies
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- Address different aspects of business analysis
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**Integration Strategies:**
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- Start with broad frameworks (PESTLE, Porter's Five Forces)
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- Apply specific frameworks based on research questions
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- Use specialized frameworks for detailed analysis
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- Synthesize findings into actionable insights
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**Best Practices:**
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- Document assumptions and limitations
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- Use consistent terminology and definitions
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- Validate findings with additional sources
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- Update analysis regularly for changing conditions
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This comprehensive set of frameworks provides structured approaches to analyzing industries, markets, and competitive landscapes, enabling thorough and actionable business intelligence research.
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Reference in New Issue
Block a user