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Business Strategy

I spent years running an online business before I encountered most of these frameworks, and when I finally did, I felt a mix of "oh, that's what I was doing" and "oh, that's why that didn't work." Strategy frameworks are just structured ways of asking better questions about your business — where to play, how to win, what to protect, what to let go. For indie publishers, Etsy sellers, and digital creators, the most relevant question is usually "where should I focus my limited time and energy?" These 21 frameworks will help you answer it with more rigour and less guesswork.

SWOT Analysis Albert Humphrey / Stanford Research Institute, 1960s–1970s Maps internal Strengths and Weaknesses against external Opportunities and Threats to force a structured, honest assessment of where you stand before making any strategic move. Ansoff Matrix Igor Ansoff, 1957 A 2×2 grid mapping four growth strategies across products and markets — Market Penetration, Product Development, Market Development, and Diversification — ranked by risk. Porter's Five Forces Michael Porter, 1979 Assesses industry profit potential through five structural forces: new entrants, supplier power, buyer power, substitutes, and competitive rivalry. BCG Growth-Share Matrix Bruce Henderson / Boston Consulting Group, 1970 Plots products or income streams as Stars, Cash Cows, Question Marks, or Dogs to guide resource allocation decisions across a portfolio. Value Chain Analysis Michael Porter, 1985 Breaks a business into primary and support activities to show where value is created, where costs hide, and which activities deserve your best energy. PESTLE Analysis Francis Aguilar (originally PEST), 1967 Scans the macro-environment across Political, Economic, Social, Technological, Legal, and Environmental dimensions to surface external forces before they blindside you. Blue Ocean Strategy W. Chan Kim & Renée Mauborgne, 2005 Makes competition irrelevant by creating uncontested market space through simultaneous differentiation and lower cost rather than beating rivals at their own game. Balanced Scorecard Robert Kaplan & David Norton, 1992 Tracks business health across Financial, Customer, Internal Process, and Learning and Growth perspectives to stop you measuring only what's easy to count. Business Model Canvas Alexander Osterwalder & Yves Pigneur, 2010 A single-page nine-block template mapping how a business creates, delivers, and captures value — fast to fill in, slow to argue with. Lean Canvas Ash Maurya, 2012 Adapts the Business Model Canvas for new product launches by centring on Problem, Solution, Key Metrics, and Unfair Advantage. McKinsey 7S Framework Tom Peters & Robert Waterman / McKinsey, late 1970s Shows that organisational effectiveness requires alignment across Strategy, Structure, Systems, Style, Staff, Skills, and Shared Values — change one without the others and things break. Porter's Generic Strategies Michael Porter, 1980 Three competitive positions — Cost Leadership, Differentiation, and Focus — that a business must choose between to avoid being stuck in the middle with no real advantage. Core Competency C.K. Prahalad & Gary Hamel, 1990 Identifies the unique bundle of skills underlying all your products that competitors can't easily copy — and argues that everything you build should strengthen it, not dilute it. Scenario Planning Pierre Wack / Royal Dutch Shell, early 1970s Builds three to four plausible futures and stress-tests current strategy against each, revealing which actions hold up regardless of which scenario materialises. OKRs (Objectives & Key Results) Andy Grove / Intel, 1970s Pairs an inspirational Objective with measurable Key Results, set quarterly and graded 0–1, so that 0.7 is success and 1.0 means you set the bar too low. Blue Ocean: Four Actions Framework (ERRC) W. Chan Kim & Renée Mauborgne, 2005 Applies four actions — Eliminate, Reduce, Raise, Create — to every competitive factor to build a new value proposition that breaks the cost-differentiation trade-off. Wardley Mapping Simon Wardley, mid-2000s Plots business components by user visibility and evolutionary stage to show what's commoditising, where to invest, and where your competitive advantage will erode next. Hedgehog Concept Jim Collins, 2001 The intersection of what you're deeply passionate about, what you can be best in the world at, and what drives your economic engine — the one thing to build everything around. Flywheel Effect Jim Collins, 2001 Consistent effort on the right strategic drivers compounds into self-reinforcing momentum — slow and discouraging at first, then nearly unstoppable. Three Horizons of Growth Mehrdad Baghai / McKinsey, 2000 Manages innovation investment across three simultaneous time frames: current core business, growing medium-term opportunities, and early-stage long-term bets. Playing to Win Framework A.G. Lafley & Roger Martin, 2013 Five cascading strategic choices — winning aspiration, where to play, how to win, required capabilities, and management systems — each constraining and informing the next.
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