Flevy Strat Devdep

Flevy Business Primer
Introduction to Business Strategy

Development & Execution
This primer is available for free at http://flevy.com/strategy-frameworks

Flevy Business Primer
Introduction to Business Strategy
Development & Execution
A successful business requires both a well developed strategy and the ability to execute on that
strategy. Strategy without execution is merely theory. Many companies develop robust strategies,
but fail at operationalizing their strategies into implementable steps. This document introduces 12
powerful business frameworks for Strategy Development and Strategy Execution.
STRATEGY DEVELOPMENT STRATEGY EXECUTION

1 4 7 10
Consolidation- Blue Ocean Marketing Mix Balanced
Endgame Curve Strategy (4/7 Ps) Scorecard
2 5 8 11
Porters Five Organizational
SWOT Analysis Product Lifecycle
Forces Hurdles
3 6 9 12
BCG Growth-Share
PEST Analysis Consumer Adoption Curve Hoshin Kanri
Matrix
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Download the latest version of this primer for free at: http://flevy.com/strategy-frameworks / Question? Email us: support@flevy.com 3
Contents
Overview 5
Strategy Development Frameworks 7
Strategy Execution Frameworks 34
Summary 44
Appendix 50

4
Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix

5
Strategy without execution is merely theoryin this document, we will
discuss 12 frameworks on Strategy Development and Execution
Executive Summary
A successful business requires both a well developed strategy and the ability to execute on that strategy.
Strategy without execution is merely theory. Many companies develop robust strategies, but fail at operationalizing
their strategies into implementable steps.
This document covers frameworks that deal with both sidesStrategy Development and Strategy Execution.
In this presentation, we will discuss 12 business frameworks. For each framework, we will provide an overview,
explain its proper usage, and highlight the analyses involved.
This document will also provide references to more detailed documentation, guides, and methodologies if you would
like more information.
The following business frameworks will be discussed:
Consolidation-Endgame Curve Blue Ocean Strategy Consumer Adoption Curve
Porters Five Forces SWOT Analysis Balanced Scorecard
BCG Growth-Share Matrix PEST Analysis Organizational Hurdles
Marketing Mix (4/7 Ps) Product Lifecycle Hoshin Kanri
Each framework is geared towards a specific type of analysispick and choose the best
frameworks to use for your particular business problem.

6
Contents
Overview
Summary
Appendix

7
In this section, we will cover 9 strategy frameworks6 focus on external,
competitive factors, while 3 rely on internal strategies
1 4 7
Consolidation-Endgame
Blue Ocean Strategy Marketing Mix (4/7 Ps)
Curve
2 5 8
Porters Five Forces SWOT Analysis Product Lifecycle
3 6 9
BCG Growth-Share Matrix PEST Analysis Consumer Adoption Curve
These first 6 frameworks focus more on Industry and These 3 frameworks are more Product
Competitive Analysisthey are more externally focused. focusedand rely on more internal
strategies.
A well developed strategy should use at least 5 of the above analyses covering both
external and internal perspectives.

8
Consolidation- Blue Ocean
Marketing Mix
Endgame Curve Strategy
1. Consolidation-Endgame Curve Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
BCG Matrix PEST Analysis
Overview Adoption Curve
The Consolidation-Endgame Curve framework (also known as Consolidation Curve or Endgame Curve) is not a well
known framework, but is one that offers incredibly insights into market dynamics and competitive strategies.
This framework was developed by the management consulting firm AT Kearney after they performed a study on 25,000
firms, representing 98% of the global market cap. The firm realizes that all industries go through the same 4-stage
lifecycleOpening, Scale, Focus, Balance & Alliance.
Across all industries, the same characteristics are exhibited at each stage of the Curve.
By appropriately identifying our stage and understanding the defining traits and behavior of our stage, we can better
understand and predict market and competitive behavior and trends. Every major strategic and operational move should
be evaluated with regard to the industrys stage in the Consolidation Curve.
On a more subtle note, the industry stage also governs what type of management and leadership works best for the
company. In other words, the management team in the Scale phase may not possess the right skills to run the company
at the Balance & Alliance stage.
This framework not only helps us define a more informed corporate strategy, but also helps
define our organizational structure and the proper management team.

9
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
4 Stages of Consolidation Adoption Curve
Stage I Stage II Stage III Stage IV
OPENING SCALE FOCUS BALANCE & ALLIANCE
DESCRIPTION The industries operating in In the Scale stage, major In the Focus stage, In the final stage,
the Opening stage include players begin to emerge successful players consolidation rates reach
newly deregulated and size begins to matter continue to aggressively 90%, so a few players
industries, startups, and these players take the outgrow competition dominate each industry at
spin-off industries lead in consolidation this point
These companies focus
New industry catalysts can Niche players begin to feel meaning they extend their Large companies form
include new technology, pressure core business and alliances with each other,
new regulation, new ideas, eliminate secondary as growth is challenging at
Concentration rates can
and new consumer needs business units this stage
be as high as 45% in
There is little to no market some industries The supply and value Companies often look for
concentration at this point chains begin to be new Opening-stage
streamlined industries to expand into
COMBINED
SHARE OF TOP 41% 42% 50% 70%
3 PLAYERS
In the final stage, industry titans dominate the landscape, controlling 70% of the marketany
number of businesses can occupy the remaining 30%.
Source: Winning the Merger Endgame, 2002

10
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Consolidation-Endgame Curve Diagram Adoption Curve
Stage I Stage II Stage III Stage IV

OPENING SCALE FOCUS BALANCE & ALLIANCE
100%
Combined
Share of
Top 3
Players Maximum
Combined market
share of top 3 players
50%
Minimum
Time
0%
The combined market share of the top 3 players follows an S-curve.
Source: Winning the Merger Endgame, 2002

11
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
More Information Adoption Curve
This framework is explained in detail in the DETAILS

document Consolidation Endgame Curve Seller: LearnPPT
Topics covered include: stages of consolidation, File size: 800KB
growth strategy implications, stage impact on
financials, stage impact on strategy and Number of Slides: 29
operations, stage impact on
management/organization, Value-Building Growth
Matrix, and niche strategies
RELATED DOCUMENTS/FRAMEWORKS
Guide to Business Strategy Design - https://flevy.com/browse/business-document/complete-guide-to-business-strategy-design-375
Growth Strategy Toolkit - https://flevy.com/browse/business-document/growth-strategy-208
Five Stages of Business Growth - https://flevy.com/browse/business-document/five-stages-of-business-growth-249
Learn more about the Consolidation-Endgame Curve here:

https://flevy.com/browse/business-document/consolidation-endgame-curve-framework-201

12
Marketing Mix
Porters Five Forces Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Developed by Michael Porter, recognized as the father of modern business strategy, Porters Five Forces is one
of the most well known classic strategy frameworks.
Porters Five Forces is a framework used for industry analysis and understand the various dynamics amongst industry
players and external forces.
It is based on the theory that competition in any industry is dependent on 5 basic forcesPotential Entrants, Internal
Rivalry, Suppliers, Buyers, and Substitutes (or Complements). The collective strength of these forces determines the
ultimate profit potential and allocation in the industry.
Using this framework, we can determine how attractive/desirable it is to compete in any industry, as well as what the
overarching strategy should be to compete successfully in the industrysuccess is determined by the ability to develop a
sustainable competitive advantage.
It can also be used to assess which industry trends may pose as opportunities or threats.
Several important economic and technical characteristics of an industry are critical to the
strengths of each competitive force.

13
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
5 Forces Explained and Framework Diagram Adoption Curve
Threat of New Entrants
Barriers to entry: Competitive Advantage

Economies of scale (including shared resources)
Product differentiation (proprietary) Lower Cost Differentiation
Capital requirements
Switching costs Cost
Differentiation
Access to distribution channels Broad Leadership
Competitive
Cost disadvantages independent of scale
Scope
Government policy Cost Differentiation
Expected reaction of incumbent Narrow Focus Focus
Bargaining Power of Suppliers Intensity of Rivalry Bargaining Power of Buyers
A supplier group is powerful when: Intense rivalry results from: A buyer group is powerful when:
It is dominated by a few companies and is more Numerous or equally balanced competitors It is concentrated or purchases large volumes relative to
concentrated than the industry it sells to. Slow industry growth
seller sales.
The products represent a significant fraction of the
There are no substitute products. High fixed or storage costs buyers costs or purchases.
The industry is not an important customer. Lack of differentiation or switching costs The products are standard or undifferentiated.
Its products are important to the industry. Capacity augmented in large increments It faces few switching costs.
It earns low profits.
Products are differentiated or suppliers have built Diverse competitors It poses a credible threat of backward integration.
up switching costs. High strategic stakes The bought product is unimportant.
It poses a credible threat of forward integration. High exit barriers It has full information.
Pressure from Substitute Products

Exit Barriers
Search for products that can perform the same Take offensive or defensive actions to create a
L H function. defensible position against the forces:
Assess buyers propensity to substitute. Positioning the firm so its capabilities provide the
Low, stable Low, risky Focus on those that: best defense
L returns returns Are improving their price performance trade-off Influencing the balance of forces through strategic
Entry
Barriers compared with the industries products. moves
High,
H High, risky Require low switching costs. Anticipating shifts in the factors underlying the
stable
returns forces and responding to them
returns Are produced by industries earning high profits.

14
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer

document Porters Five Forces Seller: LearnPPT
Flevy has multiple documents that discuss and File size: 800KB
teach this framework in detail:
Number of Slides: 26
Porters 5 Forces Model and Application
Complete Business Frameworks Guide
Growth Strategy Toolkit - https://flevy.com/browse/business-document/growth-strategy-208
Blue Ocean Strategy - https://flevy.com/browse/business-document/blue-ocean-strategy-the-peaceful-strategy-114
Industry Analysis - http://flevy.com/browse/business-document/industry-analysis-773
Learn more about Porters Five Forces here:

https://flevy.com/browse/business-document/porters-five-forces-235

15
Marketing Mix
BCG Growth-Share Matrix Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
The BCG Growth-Share Matrix (also called Product Portfolio and Boston Matrix) is a classic competitive positioning
strategy framework developed by the management consulting firm Boston Consulting Group (BCG).
The growth-share matrix displays graphically in a 2-by-2 matrix one of two scenarios:
The position of each business of a companys portfolio; or
Compares the position of various players in one industry.
The two axes of the matrix are 1) market/industry growth and 2) relative market share (RMS). We then plot our products
onto the matrix and quadrant associated with the product drives its strategy. The quadrants are defined as follows:
Star high RMS, high market growth;
Cash cow High RMS, low market growth;
Dog Low RMS, low market growth; and
Question mark Low RMS, high market growth.
The key premise to this framework is that products located in each of the quadrants will be in fundamentally different
cash flow positions and should be managed differently.
This framework is used to assess trends in the evolution of a companys portfolio of business (when matrix is drawn for
both the current year and past years). It can also be used to understand the competitive position of each business,
possible cash requirements, and focus attention on key issues.
This framework helps the us allocate resources and is can be used as an analytical tool in
brand marketing, product management, strategic management, or portfolio analysis.

16
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
4 Quadrants Explained Adoption Curve
Cash cows are units with high market share in a slow-growing industry. These units typically generate
cash in excess of the amount of cash needed to maintain the business. They are regarded as staid
Cash Cow and boring, in a "mature" market, and every corporation would be thrilled to own as many as
possible. They are to be "milked" continuously with as little investment as possible, since such
investment would be wasted in an industry with low growth.
Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing
industry. These units typically "break even", generating barely enough cash to maintain the
business's market share. Though owning a break-even unit provides the social benefit of providing
Dog jobs and possible synergies that assist other business units, from an accounting point of view such a
unit is worthless, not generating cash for the company. They depress a profitable company's return
on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is
thought, should be sold off.
Question marks (also known as problem child) are growing rapidly and thus consume large amounts
?
of cash, but because they have low market shares they do not generate much cash. The result is a
Question large net cash consumption. A question mark has the potential to gain market share and become a
Mark star, and eventually a cash cow when the market growth slows. If the question mark does not
succeed in becoming the market leader, then after perhaps years of cash consumption it will
degenerate into a dog when the market growth declines. Question marks must be analyzed carefully
in order to determine whether they are worth the investment required to grow market share.
Stars are units with a high market share in a fast-growing industry. The hope is that stars become the
next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is
Star worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become
cash cows if they have been able to maintain their category leadership, or they move from brief
stardom to dogdom.

17
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
BCG Matrix Framework Diagram Adoption Curve
Y%
Star Question Mark
?
Industry
Growth
Cash Cow Dog

X%
Z 0
Relative
Market Share

18
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer

document BCG Growth-Share Matrix Seller: LearnPPT
Topics covered include: quadrant definitions, File size: 400KB
analysis steps/process, examples, templates, and
tips. Number of Slides: 9
Market Analysis - https://flevy.com/browse/business-document/market-analysis-215
Product Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227
Learn more the BCG Growth-Share Matrix here:

https://flevy.com/browse/business-document/bcg-growth-share-matrix-200

19
Marketing Mix
Blue Ocean Strategy Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Blue Ocean Strategy is growth strategy framework focused on the idea of creating an uncontested market
space--i.e. a "blue ocean." This framework is very innovative, as its principles challenge the conventional business
strategy principles of fighting competitors head-on.
The Blue Ocean Strategy framework evolved from a framework called Value Innovation developed by Gemini Consulting
(now Capgemini Consulting) in the late 90s.
At the heart of Blue Ocean Strategy, we have concept of Value Innovation. Value without innovation tends to focus on
value creation on an incremental scale, i.e. something that improves value but is not sufficient to make us really stand out
in the marketplace. Innovation without value tends to be technology-driven, market pioneering, or futuristic, often shooting
beyond what buyers are ready to accept and pay for.
Value Innovation occurs only if we align innovation with utility, price, and cost positions. The focus here is not time-to-
market, bleeding-edge technology or best practices. It is the ambition to break one of the most commonly accepted
dogmas of competition-based strategy: the value-cost trade-off.
It is conventionally believed that companies can either create greater value to customers at a higher cost, or create
reasonable value at a lower cost. Here, strategy is seen as making a choice between differentiation and cost. In contrast,
to create blue oceans, we need to pursue differentiation and low cost simultaneously, by looking within and beyond our
industry boundaries and redefining a market altogether.
Blue Ocean Strategy challenges many of the conventional principles of strategy, based on the
pursuit of competitive strategy.

20
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Value Creation Thinking Adoption Curve
Growth Focus
Start with customer needs
Look beyond traditional
markets, industries and Value Identification
competitors
Create multi-horizon Understand what the
portfolio customer values
Develop growth platforms Prioritize initiatives Value Creation
for market mining Select and develop
Consumer Market growth option
Value
Need Trends Align operating model to Effective Execution

deliver value and fair
value Concept Execution
Growth Platform Eliminate Reduce Raise Create Venture Launch
Organizational alignment
Costs
Funding / Resource
Allocation
Measurements
Value Accountability
Innovation
Sustainable Growth
Structure
Infrastructure
Value
Culture
Alliance Management
M&A
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

21
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Value Curve Framework and Diagram Adoption Curve
A powerful framework used in Blue Ocean Strategy analysis is the Value Curve, which depicts where traditional,
incumbent players are placing their value. It allows us to visualize where competition places value, where
customers place value, and where are potential opportunities to disrupt the market. We can determine which
specific value attributes to eliminate, to reduce, to raise, and to create. By creating new value attributes, we creating
a blue ocean to compete in.
+ Traditionals
Value
Innovator
Value
-
Eliminate Reduce Raise Create
Which of the attributes Which attributes should Which attributes should be Which attributes should be
that our industry takes be reduced well below raised well above the created that the industry
for granted should be the industrys industrys standards? has never offered?
eliminated? standards?
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

22
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
We have 2 frameworks that do a great job of explaining the Blue Ocean Strategy framework:
The Peaceful Strategy

https://flevy.com/browse/business-document/Blue-Ocean-Strategy---The-Peaceful-Strategy-114
2.4MB, 35 slides, includes 1-page mind map (PDF)
Blue Ocean Strategy Primer

https://flevy.com/browse/business-document/Blue-Ocean-Strategy-Primer-113
600KB, 18 slides
Blue Ocean Strategy Canvas (Excel Template) -
https://flevy.com/browse/business-document/blue-ocean-strategy-canvas-template-448
Growth Strategy Toolkit http://flevy.com/browse/business-document/growth-strategy-208
Growth Opportunity Assessment - https://flevy.com/browse/business-document/growth-opportunity-assessment-759
Business Model Innovation - https://flevy.com/browse/business-document/business-model-innovation-136

23
Marketing Mix
SWOT Analysis Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
The SWOT Analysis (also called SWOT Matrix) is one of the earliest strategy frameworks. It was developed in the 1960s
at Harvard Business School by Learned, Christensen, Andrews, and Guth.
The name is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
This framework provides basic directions for structuring strategic analysis.
The underlying theory is that assessment of competitive position should combine both an external and an internal
analysis. The internal factors are Weaknesses and Strengths, whereas the external factors are Opportunities and
Threats.
We can conduct SWOT analyses for our own organization in addition to our competitors, so that we gain added insight
into our companys competitive position.
The output of this analysis is often displayed in the form of a 2x2 matrix.
SWOT Analysis is often conducted in conjunction with PEST Analysis.
Many market research firms routinely publish SWOT analyses for public companies.

24
Marketing Mix
PEST Analysis Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
PEST Analysis is a framework evaluating macro-environmental factors used in the environmental scanning
component of strategic management. The PEST analysis framework has become increasingly popular and relevant as
the first decade of the 21st century have given rise to green business and environmental concerns from the public.
PEST is an acronym for Political, Economic, Social, and Technological, which are the macro-environmental factors to
analysis in this analysis.
This analysis is often performed in conjunction with other popular frameworks, as a means of enhancing the
understanding and output of these other frameworks. Specifically, it is often used to help explain the analysis in the
following frameworks:
Porters Five Forces;
SWOT Analysis;
Value Chain Analysis; and
Industry financials.
PEST Analysis is often performed in a 3-phase process: data collection, industry trend analysis, and trend quantification.
PEST Analysis been sometimes been extended to include Legal and Environmental, forming
the name PESTLE Analysis.

25
Marketing Mix
Marketing Mix (4/7 Ps) Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
The 4 Ps of marketing, often just called Marketing Mix, is perhaps the commonly used corporate marketing framework.
The marketing mix refers to the 4 levers to adjust when determining the essence of products marketing strategy.
The 4 Ps refer to Price, Product, Promotion, and Placement.
This framework has been extended to 7 Ps, to also include Physical Evidence, People, and Process.
The definitions for the additional 3 Ps should not be confused with the People-Process-Technology framework, which is
more operationally-focused (vs. consumer-focused).
In most cases, Price and Product are the more important factors and are determined
firstas these are more closely tied to our competitive advantage.

26
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Definitions of the Ps Adoption Curve
A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an
1
intangible service. Intangible products are service based like the tourism industry, the hotel industry and the
Product financial industry. Tangible products are those that have an independent physical existence.
Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less
obvious but ubiquitous mass-produced service is a computer operating system. Every product is subject to a
life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as
sales falls.
Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be
and focus their attention on different challenges that arise as the product moves through each stage. The
marketer must also consider the product mix. Marketers can expand the current product mix by increasing a
certain product lines depth or by increasing the number of product lines. Marketers should consider how to
position the product, how to exploit the brand, how to exploit the companys resources and how to configure
the product mix so that each product complements the other.
The marketer must also consider product development strategies.
2 The amount a customer pays for the product. The price is very important as it determines the companys
profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending
Price on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set
a price that complements the other elements of the marketing mix.
When setting a price, the marketer must be aware of the customer perceived value for the product. Three
basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The
reference value (where the consumer refers to the prices of competing products) and the differential value
(the consumers view of this products attributes versus the attributes of other products) must be taken into
account.
27
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
All of the methods of communication that a marketer may use to provide information to different
3
parties about the product. Promotion comprises elements such as: advertising, public relations, personal
Promotion selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet
advertisements through print media and billboards. Public relations is where the communication is not directly
paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals,
satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays
an important role in word of mouth and public relations.
Refers to providing the product at a place which is convenient for consumers to access. Various
4
strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be
Placement used by the marketer to complement the other aspects of the marketing mix.

28
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
5
Physical Elements within the store the store front, the uniforms employees wear, signboards, etc.
Evidence
6
The employees of the organization with whom customers come into contact.
People
7
The processes and systems within the organization that affects its marketing process.
Process
The additional 3 Ps are mostly relevant to Service marketing.

29
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Below, we have compiled a number of Corporate Marketing-focused frameworks and tools.
PRICING STRATEGY
Pricing Strategy Framework - https://flevy.com/browse/business-document/pricing-strategy-226
Pricing Strategy Workshop - https://flevy.com/browse/business-document/pricing-strategy-workshop-764
Price Increase Execution - http://flevy.com/browse/business-document/best-practices-in-price-increase-execution-681
PRODUCT STRATEGY
Product Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227
Rogers Five Factors - https://flevy.com/browse/business-document/rogers-five-factors-169
Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203
MARKETING PLAN DEVELOPMENT

Marketing Plan Framework - https://flevy.com/browse/business-document/marketing-plan-development-framework-174
Strategic Marketing and Sales Planning - https://flevy.com/browse/business-document/strategic-marketing-and-sales-planning-612
Strategic Marketing Plan Template - https://flevy.com/browse/business-document/strategic-marketing-plan-template-676
The Flevy author DemandMetric specializes in Corporate Marketing tools built in Excel:
https://flevy.com/seller/demandmetric

30
Marketing Mix
Product Lifecycle and Consumer Adoption Curve Porters Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Product Lifecycle analysis is a tool to predict how sales will develop based on the age of the product category.
Marketers and strategists can use this analysis to predict sales growth, associated customer and competitor behaviors,
and, in turn, devise the appropriate product marketing strategy.
The Product Lifecycle itself it divided into 4 stages of development: Introduction, Growth, Maturity (and Saturation),
and Decline (and Termination).
The length of each period varies tremendously. Some products have very short cycles, whereas others can take decades
or even centuries to go through the cycle. The lifecycle can be mapped against the consumer adoption curve, where the
peak of the curve generally occurs in the maturity stage of the Product Lifecycle.
The Product Lifecycle is typically mapped against the Consumer Adoption Curve to draw out key marketing and
competitive insights. By understanding what stage of the Consumer Adoption Curve were at, we can gain invaluable
insights into the who our target customer are, as well as their defining attributes.
The Consumer Adoption Curve is defined by 5 sequential stages: Innovators, Early Adopters, Early Majority, Late Majority,
and Laggards. Typically, there is a chasm between the Early Adopters and Early Majority.
Product Lifecycle Analysis also provides a framework to understand the competitive environment. It makes an underlying
assumption that sales and profitability follow a predictable pattern for all industries and all products within those
industries.
Be aware that as a product moves through its lifecycle, the likelihood of customers
switching to a substitute product increases.

31
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Product Lifecycle Mapped on Consumer Adoption Curve Adoption Curve
STAGE 1 STAGE 2 STAGE 3 STAGE 4
INTRODUCTION GROWTH MATURITY DECLINE
Crossing the Chasm
Innovators Early Adopters Early Majority Late Majority Laggards
It is useful to map all products within an industry or product category against the Adoption
Curveto visualize dynamics among products (e.g. substitution, complements).

32
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Both frameworks are explained in the document DETAILS

Product Lifecycle, with the emphasis on Product Seller: LearnPPT
Lifecycle Analysis
File size: 700KB
Additional topics covered include: Bass Diffusion
Model, Lifecycle-Performance Factor Matrix, Number of Slides: 34
strategic positioning, and substitution analysis.
Pricing Strategy https://flevy.com/browse/business-document/pricing-strategy-226
Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203
Complete Business Frameworks Guide -
https://flevy.com/browse/business-document/complete-business-frameworks-reference-guide-644
Learn more about Product Lifecycle and Consumer Adoption Curve analyses here:
https://flevy.com/browse/business-document/product-lifecycle-227

33
Contents
Overview
Summary
Appendix

34
In this section, we will cover 3 strategy execution frameworks
Strategy Execution Framework
1 2 3
Balanced Scorecard Organizational Hurdles Hoshin Kanri
Organizations spend 90-95% of their time and resources on executiondespite this, most
organizations fail at the execution of their strategies.

35
Balanced Organizational Hoshin
Scorecard Hurdles Kanri
Balanced Scorecard
Overview
The Balanced Scorecard (BSC) is a Strategy Performance Management tool. It is a semi-standard structured report,
supported by proven design methods and automation tools, that can be used by managers to keep track of the execution
of activities by the staff within their control and to monitor the consequences arising from these actions. It was developed
by Robert Kaplan and David Norton.
The BSC approach is called balanced, because it supplements traditional financial measures with 3 key non-financial
areas:
A companys relationship with its customers;
Its key internal business processes; and
Its learning and growth.
This approach enables companies to track financial results, while simultaneously monitoring progress in building the
capabilities and acquiring the intangible assets they need for future growth.
BSC also provides a framework for companys to translate their strategy into measurable and actionable KPIs and
objectives. Specifically, it ties 4 key management processes (Translating the Vision, Communicating and Linking,
Business Planning, and Feedback and Learning) into both short-term and long-term strategic objectives.
The BSC framework is flexible in that it allows for the strategy itself to evolve in response to
changes in the companys competitive, market, and technological environments.

36
Balanced Scorecard
4 Management Key Processes Framework and Definitions
1 Translating the Vision
Clarifying the vision

Gaining consensus
2 Communicating and Linking 4 Feedback and Learning
Communicating and educating Articulating the shared vision

Balanced
Setting goals Supplying strategic feedback
Scorecard Facilitating strategy review and
Linking rewards to performance
measures learning
3 Business Planning
Setting targets
Aligning strategic initiatives
Allocating resources
Establishing milestones
Source: Balanced Scorecard, Kaplan and Norton (2005)

37
Balanced Scorecard
More Information
The BSC framework is explained in detail in our DETAILS

document Balanced Scorecard Seller: PPTLab
Topics covered include: Four Processes File size: 600KB
(Translating the Vision, Communicating and
Linking, Business Planning, Feedback and Number of Slides: 27
Learning), Four Perspectives (Financial
Measures, Customer Relationships, Internal
Business Processes, Learning and Growth),
Personal Scorecard, and Strategic Learning
We have a number of other BSC documents,
listed below
BSC Strategy Map - https://flevy.com/browse/business-document/balanced-scorecard-strategy-map-256
BSC Training - https://flevy.com/browse/business-document/opex-balanced-scorecard-training-module-567
BSC Overview & Examples - https://flevy.com/browse/business-document/introduction-to-balanced-scorecard-723
Learn more about the Balanced Scorecard here:

https://flevy.com/browse/business-document/balanced-scorecard-134

38
Organizational Hurdles
Overview
In Blue Ocean Strategy, the authors identify 4 main Organizational Hurdles that the organization must overcome for
successful business execution. These hurdles arise when a company develops a new strategy to departs from the status
quo.
These hurdles are the Cognitive Hurdle, Resource Hurdle, Motivational Hurdle, and Political Hurdle.
Although all companies face different degrees of these hurdles, many may only face a subset of the 4 hurdles. To
overcome these hurdles effectively, organizations must abandon perceived wisdom on effecting organizational change.
In Blue Ocean Strategy, the concept of overturning conventional wisdom on doing things is
called tipping point leadership.

39
4 Organizational Hurdles Definitions
1 2 3 4
Cognitive Resource Motivational Political
Hurdle Hurdle Hurdle Hurdle
An organization stuck on Limited resources An unmotivated staff Opposition from powerful

the status quoan whether in staff or finances Motivating staff to change vested interests
unwillingness to rock the The greater the shift in the status quo often takes Any significant shift to an
boat strategy, the greater the yearstime that most organization will result in a
resources needed to organizations cannot shift in political power
execute it afford
Source: Blue Ocean Strategy, Kim and Mauborgne, 2005

40
More Information
The 4 Organizational Hurdles are discussed in the DETAILS

document Guide to Business Strategy Seller: LearnPPT
Execution
File size: 700KB
This document focuses on the topic of strategy
execution and covers a number of concepts and Number of Slides: 48
frameworks: Building Blocks to Execution, 17
Traits of Successful Execution, Transformation
Program Design, Balanced Scorecard
Balanced Scorecard - https://flevy.com/browse/business-document/balanced-scorecard-134
Guide to Business Strategy Design -
https://flevy.com/browse/business-document/complete-guide-to-business-strategy-design-375
Formulating a Breakthrough Strategy - https://flevy.com/browse/business-document/formulating-a-breakthrough-strategy-598
Learn more Organizational Hurdles and other Strategy Execution frameworks here:
http://flevy.com/browse/business-document/guide-to-business-strategy-execution-873

41
Hoshin Kanri
Overview
Hoshin Kanri (also known as Policy Deployment, Hoshin Planning, or just Hoshin) is a Strategic Planning/Strategic
Management Methodology. It is based on a concept popularized in Japan in the late 1950s by Yoji Akao.
"Each person is the expert in his or her own job, and Japanese TQC (Total Quality Control) is designed to use the
collective thinking power of all employees to make their organization the best in its field, Yoji Akao. This is the
fundamental principle of Hoshin Kanri.
In other words, this framework ensures that the strategic goals of our company drive progress and action at every level
within the organization. This eliminates the waste that comes from inconsistent direction and poor communication.
This framework is intended to help an organization:
Focus on a shared goal;
Communicate that goal to all leaders;
Involve all leaders in planning to achieve the goal; and
Hold participants accountable for achieving their part of the plan.
Hoshin Kanri falls under the umbrella of Lean Thinking (or called Lean Management, Lean Methodologies). Lean
frameworks strive for continuous improvement of the organization.
Hoshin Kanri strives to get every employee pulling in the same direction at the same time.

42
Hoshin Kanri
More Information
This framework is explained in more detail in our DETAILS

document Hoshin Kanri Strategy Deployment Seller: OEConsulting
Topics covered include: underlying principles of File size: 11.8MB
Hoshin Kanri, PDCA Approach, Hoshin Kanri
Tools, Elements of Hoshin Kanri, Management Number of Slides: 145
Reviews, and Critical Success Factors
FLEVY AUTHORS WHO SPECIALIZE IN LEAN / OPERATIONAL EXCELLENCE FRAMEWORKS

OEConsulting - https://flevy.com/seller/oeconsulting
Operational Excellence Consulting - https://flevy.com/seller/oec
LEAN / OPERATIONAL EXCELLENCE BUSINESS TOOLKITS
Lean Management / Enterprise - https://flevy.com/business-toolkit/lean-management-enterprise-lean
Six Sigma - https://flevy.com/business-toolkit/six-sigma-project-6s
Learn more about Hoshin Kanri here:

https://flevy.com/browse/business-document/Hoshin-Kanri-155

43
Contents
Overview
Summary
Appendix

44
In this primer, we introduced 12 different business frameworks related to
Strategy Development and Execution
Summary
In this document, we provided high level overviews of 12 different frameworks related to Strategy Development and
Strategy Execution. These are the same tools and analyses performed by top tier consulting firms, although only a
small sample of the wide array of frameworks and tools available. You can find countless more frameworks available at
Flevy (http://flevy.com).
Using and applying these frameworks is an art. Depending on your specific business situation, the usage and
applications of these frameworks will change significantly.
To learn more about any of these topics, we advise you take a look at the recommended documents referenced
throughout this presentation. We have also included additional recommended documents in the following slides.
STRATEGY DEVELOPMENT STRATEGY EXECUTION

1 4 7 10
Consolidation- Blue Ocean Marketing Mix Balanced
Endgame Curve Strategy (4/7 Ps) Scorecard
2 5 8 11
Porters Five Organizational
SWOT Analysis Product Lifecycle
Forces Hurdles
3 6 9 12
BCG Growth-Share
PEST Analysis Consumer Adoption Curve Hoshin Kanri
Matrix

45
Here is a list of business frameworks and methodologies that have NOT
been referenced earlier in this document
Additional Frameworks Strategy Development
STRATEGY DESIGN & DEVELOPMENT
Strategy Development Methodology - https://flevy.com/browse/strategy-marketing-and-sales/strategy-development-methodology-264
Strategy Development (PLAN Framework) - https://flevy.com/browse/business-document/plan-for-performance-methodology-746
Evolution of Strategy - https://flevy.com/browse/strategy-marketing-and-sales/evolution-of-strategy-705
Success Is System, Failure Is Component - https://flevy.com/browse/business-document/success-is-system-failure-is-component-302
Core Competencies Analysis - https://flevy.com/browse/strategy-marketing-and-sales/core-competencies-analysis-75
Customer Segmentation - https://flevy.com/browse/business-document/customer-segmentation-700
Competitive Analysis - https://flevy.com/browse/business-document/competitive-analysis-689
Profit Pools Framework - https://flevy.com/browse/business-document/profit-pools-concept-744
Value Creation Framework - https://flevy.com/browse/business-document/value-creation-framework-745
Services Growth Strategy - https://flevy.com/browse/business-document/services-growth-and-effectiveness-strategy-735
Competitive Assessment - https://flevy.com/browse/business-document/guide-to-competitive-assessment-760
Industry Analysis - https://flevy.com/browse/business-document/industry-analysis-773
Market Entry Strategy - https://flevy.com/browse/business-document/market-entry-strategy-776
Shareholder Value Analysis - https://flevy.com/browse/business-document/shareholder-value-analysis-734
Market Modeling and Sizing - https://flevy.com/browse/business-document/building-a-market-model-and-market-sizing-376
Business Case Development - https://flevy.com/browse/business-document/business-case-development-framework-199
Cost Drivers Analysis - https://flevy.com/browse/business-document/cost-drivers-analysis-76

46
Additional Frameworks Strategy Execution
STRATEGY EXECUTION & DEPLOYMENT
Strategy Planning & Deployment Training -
https://flevy.com/browse/strategy-marketing-and-sales/opex-strategy-planning-and-deployment-training-module-597
McKinsey 7-S Model - https://flevy.com/browse/strategy-marketing-and-sales/mckinsey-7-s-strategy-model-197
Corporate Performance Measurement - https://flevy.com/browse/business-document/corporate-performance-measurement-696
Change Management Methodology - https://flevy.com/browse/business-document/change-management-methodology-241
Benchmarking for Performance - https://flevy.com/browse/business-document/benchmarking-for-world-class-performance-156
Scenario Planning - http://flevy.com/browse/business-document/scenario-planning-243
Value Stream Mapping - https://flevy.com/browse/business-document/opex-value-stream-mapping-training-module-599
Soft Side of Change Management - https://flevy.com/browse/business-document/soft-side-of-change-management-261

47
Here are 9 of our featured sellers on Flevyeach seller has an extensive
management consulting background and many operate their own firms
Recommended Authors/Contributors
PPT LAB LEARN PPT OE CONSULTING
https://flevy.com/seller/pptlab https://flevy.com/seller/learnppt https://flevy.com/seller/oeconsulting
Classic Business Frameworks. E.g., Business frameworks and toolkits. E.g., Topics include Lean Management,
McKinsey 7-S Model, Balanced Corporate Strategy, Change Quality Management, and
Scorecard, Christensen's Innovation, etc. Management, Operational Improvement. Strategic Planning & Deployment.
STRATICX OEC DOCUMENTS FILES

https://flevy.com/seller/straticx https://flevy.com/seller/oec https://flevy.com/seller/documentsfiles
Frameworks on Corporate and BU Frameworks focused on delivering Consulting frameworks and documents
Strategy, Business Transformation, M&A, Operational Improvement (e.g. 8D spanning Strategy, Operations, Finance.
and Operational Improvement. Problem Solving, Lean, Six Sigma).
PAUL ALLEN SMITH LANCE LATHAM TEAM NEOSI

https://flevy.com/seller/paulsa https://flevy.com/seller/lancelatham https://flevy.com/seller/teamneosi
Frameworks related to IT and Risk. E.g., Frameworks related to Operations Corporate Communications frameworks
ITIL, PRINCE2, Risk Management. Management, Process Improvement, and from McKinsey specialists with combined
Manufacturing. 40+ years experience.
Looking for more business frameworks? Check out our 10 must-have frameworks:
http://flevy.com/business-frameworks

48
We have assembled a number of Business Toolkits, each focused on a
different business projecta small selection has been included below
Flevy.com Business Toolkits
Balanced Scorecard Toolkit
https://flevy.com/business-toolkit/balanced-scorecard-bsc
Business Case Development Toolkit
https://flevy.com/business-toolkit/business-case-development-b
case
Change Management Toolkit
https://flevy.com/business-toolkit/change-management-cm
Performance Management Toolkit
https://flevy.com/business-toolkit/performance-management-perf
Pricing Strategy Toolkit
https://flevy.com/business-toolkit/pricing-strategy-ps
Product Launch Toolkit
https://flevy.com/business-toolkit/product-launch-strategy-pls
Strategic Planning Toolkit
https://flevy.com/business-toolkit/strategic-planning-sp
We have 40+ Business Toolkits
Value Chain Analysis Toolkit
https://flevy.com/business-toolkit/value-chain-analysis-vc
We are constantly adding new end-to-end Business Toolkits to Flevy:

https://flevy.com/business-toolkits

49
Contents
Overview
Summary
Appendix

50
You can download a Strategy Development Discussion deck for free from
Flevy.com
Download a Strategy Development Discussion Deck

for Free here:
http://flevy.com/share
DESCRIPTION PARTIAL PREVIEW
This is a discussion deck template for a

corporate strategy development session.
In this discussion, we go through a 2-prong
approach to growth and evaluate the merits of
various growth drivers.
From the 2-prong approach, various scenarios
can be generated in the discussions and
dashboards are used to evaluate each
scenario.

51
Why is that only 20% of the sales team generate such a disproportionate
amount of the sales? What if you were to only hire the best of the best?
Download the Fiaccabrino Selection Process Primer

for Free here:
http://flevy.com/fiaccabrino-selection-process
DESCRIPTION THE 16 HUMANISTIC ATTRIBUTES + BEHAVIORAL QUADRANT

In most sales organizations, there are 2
crippling truths1) 80-90% of sales are
generated by only 20% of the sales team and
2) turnover is abysmal.
The Fiaccabrino Selection Process (FSP) is a
proven methodology for increasing sales and
reducing turnover. It teaches you how to select
only the "best of the best" for your organization.
Whereas the methodology was originally
developed for a sales organization, it can easily
be modified and tweaked for other functions.
The core of the framework is to understand 16
critical Humanistic Attributes.

52
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Flevy Business Primer

Introduction to Business Strategy

This primer is available for free at http://flevy.com/strategy-frameworks

STRATEGY DEVELOPMENT STRATEGY EXECUTION

This primer is available for free at http://flevy.com/strategy-frameworks

Flevy was founded under the principle that

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Strategy Development Frameworks 7

Strategy Execution Frameworks 34

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Strategy Development Frameworks

Strategy Execution Frameworks

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The following business frameworks will be discussed:

Consolidation-Endgame Curve Blue Ocean Strategy Consumer Adoption Curve

Porters Five Forces SWOT Analysis Balanced Scorecard

BCG Growth-Share Matrix PEST Analysis Organizational Hurdles

Marketing Mix (4/7 Ps) Product Lifecycle Hoshin Kanri

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Strategy Development Frameworks

Strategy Execution Frameworks

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1. Consolidation-Endgame Curve Porters Five

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1. Consolidation-Endgame Curve Porters Five

Stage I Stage II Stage III Stage IV

OPENING SCALE FOCUS BALANCE & ALLIANCE

Source: Winning the Merger Endgame, 2002

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1. Consolidation-Endgame Curve Porters Five

Stage I Stage II Stage III Stage IV

The combined market share of the top 3 players follows an S-curve.

Source: Winning the Merger Endgame, 2002

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1. Consolidation-Endgame Curve Porters Five

This framework is explained in detail in the DETAILS

Learn more about the Consolidation-Endgame Curve here:

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Porters Five Forces Porters Five

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Porters Five Forces Porters Five

Threat of New Entrants

Barriers to entry: Competitive Advantage

Bargaining Power of Suppliers Intensity of Rivalry Bargaining Power of Buyers

Pressure from Substitute Products

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Porters Five Forces Porters Five

This framework is explained in detail in the DETAILS

Learn more about Porters Five Forces here:

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BCG Growth-Share Matrix Porters Five

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BCG Growth-Share Matrix Porters Five

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BCG Growth-Share Matrix Porters Five

Cash Cow Dog

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BCG Growth-Share Matrix Porters Five

This framework is explained in detail in the DETAILS

Learn more the BCG Growth-Share Matrix here:

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Blue Ocean Strategy Porters Five

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