Competitive Strategy in a Digital Age

Framework Templates – Set 1

by
Prof CB Mohan
 Competitive Strategy in a Digital Age
Global Market Environment
Ansoff Growth Matrix

 Market Development  Diversification

 Domestic Market  Concentric or Conglomerate
 International Market  High Capex
 Emerging Market
Markets
New

 Market Penetration  Product Development

 Cost Leadership  Economies of Scope
 Economies of Scale  Variants of existing product
 Red Ocean  Horizontal Integration
Markets
Existing

 Vertical Integration

Existing Products New Products

 Competitive Strategy in a Digital Age
Macro Environment and Industry dynamics

P E S T E L
• Government • Economic • Culture • Level of • Environmental • Consumer
Policy Growth • Population Innovation Policies Protection Laws
• Political Stability • Exchange Rates Growth Rate • Technology • Weather • Antitrust Laws
• Corruption • Interest Rate • Age Distribution Incentives • Climate • Copyright and
• Foreign Trade • Inflation Rate • Career Attitude • Automation • Climate Change Patent Laws
Policy • Disposable • Safety Emphasis • R&D Activity • Pressure from • Discrimination
• Tax Policy Income • Health • Technology NGOs Laws
• Labour Law • Unemployment Consciousness Awareness • Health and
• Trade Rate • Lifestyle • Infrastructure Safety Laws
Restrictions Attitude
 Competitive Strategy in a Digital Age
Macro Environment and Industry dynamics
Porter’s Five Forces Model
Barriers to Entry
- Economies of Scale
- Product Differentiation
- Capital Requirements - Customer Switching Costs
- Access to Distribution Channels
- Government Policy

Bargaining Power of Suppliers Bargaining Power of Buyers

Competitive Rivalry
- Suppliers’ products have few substitutes - Buyer has alternative suppliers
- Intensity of Rivalry - Supplier is a subcontractor of buyer
- Supplier product is an important input to buyer
- Key Capabilities of - Buyer has design ownership
- Suppliers’ products are differentiated Competitor
- Suppliers’ products have high switching costs - Buyer can easily switch suppliers

Threat of Substitutes
- Products with similar function limit the prices firms can charge
- Price - value equation of substitute products
- Disruptive innovation
Competitive Strategy in a Digital Age
Culture and Strategy

Source - https://praxie.com/cage-distance-framework-model-online-tools-templates/
 Competitive Strategy in a Digital Age
Internal Assessment
SWOT Analysis
Strength
• Things your company does
well
• Qualities that separate you
from your competitors
• Internal resources such as
skilled, knowledgeable staff
• Tangible assets such as IP,
Brand Image
Opportunity
• Underserved markets for
specific products
• Few competitors in your area
• Emerging needs; Economic
Boom
• Press/media coverage of your
company
Weakness
• Things your company lacks
• Things your competitors do Internal
better than you
• Resource limitations
• Unclear unique selling
proposition
Threat
• Emerging competitors
• Changing regulatory
environment
• Negative press/media
External
coverage
• Changing customer attitudes
toward your company
 Competitive Strategy in a Digital Age 3

Internal Assessment
TOWS Matrix

TOWS Analysis Strengths Weaknesses

Name of Business

Opportunities SO Strategies WO Strategies

Threats ST Strategies WT Strategies