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
1
ConsolidationEndgame Curve
Porters Five
Forces
BCG Growth-Share
Matrix
Blue Ocean
Strategy
STRATEGY EXECUTION
7
Marketing Mix
(4/7 Ps)
SWOT Analysis
11
Product Lifecycle
9
PEST Analysis
10
Balanced
Scorecard
Organizational
Hurdles
12
Consumer Adoption Curve
This primer is available for free at http://flevy.com/strategy-frameworks
Hoshin Kanri
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3
3
Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
34
Summary
44
Appendix
50

4
4
Contents
Overview
Summary
Appendix

5
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
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.

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Contents
Overview
Summary
Appendix

7
7
In this section, we will cover 9 strategy frameworks6 focus on external,

competitive factors, while 3 rely on internal strategies
1
4
Consolidation-Endgame
Curve
Blue Ocean Strategy
5
Porters Five Forces
SWOT Analysis
Product Lifecycle
6
PEST Analysis
These first 6 frameworks focus more on Industry and

Competitive Analysisthey are more externally focused.
These 3 frameworks are more Product

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.

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1. Consolidation-Endgame Curve
Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
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.

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9
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
4 Stages of Consolidation
Stage I
Stage II
Stage III
Stage IV
OPENING
SCALE
FOCUS
BALANCE & ALLIANCE
DESCRIPTION The industries operating in
the Opening stage include

newly deregulated
industries, startups, and
spin-off industries
New industry catalysts can
include new technology,
new regulation, new ideas,
and new consumer needs
There is little to no market
concentration at this point
COMBINED
SHARE OF TOP
3 PLAYERS
41%
In the Scale stage, major

players begin to emerge
and size begins to matter
these players take the
lead in consolidation
Niche players begin to feel
pressure
Concentration rates can
be as high as 45% in
some industries
42%
In the Focus stage,

successful players
continue to aggressively
outgrow competition
These companies focus
meaning they extend their
core business and
eliminate secondary
business units
The supply and value
chains begin to be
streamlined
In the final stage,

consolidation rates reach
90%, so a few players
dominate each industry at
this point
Large companies form
alliances with each other,
as growth is challenging at
this stage
Companies often look for
new Opening-stage
industries to expand into
50%
70%
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
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10
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Consolidation-Endgame Curve Diagram

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
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More Information
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
This framework is explained in detail in the

document Consolidation Endgame Curve
DETAILS
Topics covered include: stages of consolidation,

growth strategy implications, stage impact on
financials, stage impact on strategy and
operations, stage impact on
management/organization, Value-Building Growth
Matrix, and niche strategies
File size: 800KB
Seller: LearnPPT
Number of Slides: 29
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

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Porters Five Forces

Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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.

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Porters Five Forces

5 Forces Explained and Framework Diagram
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Threat of New Entrants

Barriers to entry:
Economies of scale (including shared resources)
Product differentiation (proprietary)
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages independent of scale
Government policy
Expected reaction of incumbent
Competitive Advantage
Lower Cost
Competitive
Scope
Differentiation
Broad
Cost
Leadership
Differentiation
Narrow
Cost
Focus
Differentiation
Focus
Bargaining Power of Suppliers
Intensity of Rivalry
Bargaining Power of Buyers
A supplier group is powerful when:

It is dominated by a few companies and is more
concentrated than the industry it sells to.
There are no substitute products.
The industry is not an important customer.
Its products are important to the industry.
Products are differentiated or suppliers have built
up switching costs.
It poses a credible threat of forward integration.
Intense rivalry results from:

Numerous or equally balanced competitors
Slow industry growth
High fixed or storage costs
Lack of differentiation or switching costs
Capacity augmented in large increments
Diverse competitors
High strategic stakes
High exit barriers
A buyer group is powerful when:

It is concentrated or purchases large volumes relative to
seller sales.
The products represent a significant fraction of the
buyers costs or purchases.
The products are standard or undifferentiated.
It faces few switching costs.
It earns low profits.
It poses a credible threat of backward integration.
The bought product is unimportant.
It has full information.
Pressure from Substitute Products

Exit Barriers
L
Entry
Barriers
L
H
Low, stable
returns
Low, risky
returns
High,
stable
returns
High, risky
returns
Search for products that can perform the same

function.
Assess buyers propensity to substitute.
Focus on those that:
Are improving their price performance trade-off
compared with the industries products.
Require low switching costs.
Are produced by industries earning high profits.
Take offensive or defensive actions to create a

defensible position against the forces:
Positioning the firm so its capabilities provide the
best defense
Influencing the balance of forces through strategic
moves
Anticipating shifts in the factors underlying the
forces and responding to them

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Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Porters Five Forces

More Information
document Porters Five Forces
DETAILS
Flevy has multiple documents that discuss and

teach this framework in detail:
File size: 800KB
Porters 5 Forces Model and Application
Seller: LearnPPT
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

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Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
Overview
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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.

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Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
4 Quadrants Explained
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Cash Cow
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
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.
Dog
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
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
Mark
Star
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
large net cash consumption. A question mark has the potential to gain market share and become a
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
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.

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Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix Framework Diagram
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Y%
Star
Question Mark
Cash Cow
Dog
Industry
Growth
X%
Z
Relative
Market Share

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18
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
More Information
BCG Matrix
PEST Analysis
Consumer
Adoption Curve

document BCG Growth-Share Matrix
DETAILS
Topics covered include: quadrant definitions,

analysis steps/process, examples, templates, and
tips.
File size: 400KB
Seller: LearnPPT
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

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Blue Ocean Strategy

Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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-tomarket, 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.

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Blue Ocean Strategy

Value Creation Thinking
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Growth Focus
Consumer
Need
Market
Trends
Growth Platform
Value Identification
Understand what the
customer values
Prioritize initiatives
Value
Start with customer needs

Look beyond traditional
markets, industries and
competitors
Create multi-horizon
portfolio
Develop growth platforms
for market mining
Eliminate Reduce
Raise
Create
Value Creation
Select and develop
growth option
Align operating model to
deliver value and fair
value
Costs
Value
Innovation
Effective Execution
Concept Execution
Venture Launch
Organizational alignment
Funding / Resource
Allocation
Measurements
Accountability
Sustainable Growth
Structure
Value
Infrastructure
Culture
Alliance Management
M&A
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

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Blue Ocean Strategy

Value Curve Framework and Diagram
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
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
Value
Innovator
Eliminate
Which of the attributes
that our industry takes
for granted should be
eliminated?
Reduce
Which attributes should
be reduced well below
the industrys
standards?
Raise
Which attributes should be
raised well above the
industrys standards?
Create
Which attributes should be
created that the industry
has never offered?
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)

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Blue Ocean Strategy

More Information
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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

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Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
SWOT Analysis
Overview
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.

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PEST Analysis
Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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.

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Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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.

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Definitions of the Ps
1
Product
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an
intangible service. Intangible products are service based like the tourism industry, the hotel industry and the
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
Price
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
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.

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3
Promotion
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
All of the methods of communication that a marketer may use to provide information to different
parties about the product. Promotion comprises elements such as: advertising, public relations, personal
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.
4
Placement
Refers to providing the product at a place which is convenient for consumers to access. Various
strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be
used by the marketer to complement the other aspects of the marketing mix.

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

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More Information
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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

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Product Lifecycle and Consumer Adoption Curve

Overview
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
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.

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Product Lifecycle Mapped on Consumer Adoption Curve
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
STAGE 2
STAGE 3
STAGE 4
INTRODUCTION
GROWTH
MATURITY
DECLINE
Crossing the Chasm
STAGE 1
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).

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More Information
Blue Ocean
Strategy
Marketing Mix
Porters Five
Forces
SWOT Analysis
Product
Lifecycle
BCG Matrix
PEST Analysis
Consumer
Adoption Curve
Both frameworks are explained in the document

Product Lifecycle, with the emphasis on Product
Lifecycle Analysis
Additional topics covered include: Bass Diffusion
Model, Lifecycle-Performance Factor Matrix,
strategic positioning, and substitution analysis.
DETAILS
Seller: LearnPPT
File size: 700KB
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

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Contents
Overview
Summary
Appendix

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In this section, we will cover 3 strategy execution frameworks

Strategy Execution Framework
2
Balanced Scorecard
Hoshin Kanri
Organizations spend 90-95% of their time and resources on executiondespite this, most
organizations fail at the execution of their strategies.

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Balanced Scorecard
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
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.

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Balanced
Scorecard
Balanced Scorecard
Organizational
Hurdles
Hoshin
Kanri
4 Management Key Processes Framework and Definitions
Translating the Vision

Clarifying the vision
Gaining consensus
Communicating and Linking

Communicating and educating
Balanced
Scorecard
Setting goals
Linking rewards to performance
measures
Feedback and Learning

Articulating the shared vision
Supplying strategic feedback
Facilitating strategy review and
learning
Business Planning
Setting targets
Aligning strategic initiatives
Allocating resources
Establishing milestones
Source: Balanced Scorecard, Kaplan and Norton (2005)

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Balanced
Scorecard
Balanced Scorecard
Organizational
Hurdles
Hoshin
Kanri
More Information
The BSC framework is explained in detail in our
document Balanced Scorecard
DETAILS
Topics covered include: Four Processes

(Translating the Vision, Communicating and
Linking, Business Planning, Feedback and
Learning), Four Perspectives (Financial
Measures, Customer Relationships, Internal
Business Processes, Learning and Growth),
Personal Scorecard, and Strategic Learning
File size: 600KB
Seller: PPTLab
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

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Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
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.

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Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
4 Organizational Hurdles Definitions
Cognitive
Hurdle
An organization stuck on
the status quoan
unwillingness to rock the
boat
Resource
Hurdle
Limited resources
whether in staff or finances
The greater the shift in
strategy, the greater the
resources needed to
execute it
Motivational
Hurdle
An unmotivated staff
Motivating staff to change
the status quo often takes
yearstime that most
organizations cannot
afford
Political
Hurdle
Opposition from powerful

vested interests
Any significant shift to an
organization will result in a
shift in political power
Source: Blue Ocean Strategy, Kim and Mauborgne, 2005

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Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
More Information
The 4 Organizational Hurdles are discussed in the
document Guide to Business Strategy
Execution
This document focuses on the topic of strategy
execution and covers a number of concepts and
frameworks: Building Blocks to Execution, 17
Traits of Successful Execution, Transformation
Program Design, Balanced Scorecard
DETAILS
Seller: LearnPPT
File size: 700KB
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

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Hoshin Kanri
Balanced
Scorecard
Organizational
Hurdles
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.

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Balanced
Scorecard
Hoshin Kanri
Organizational
Hurdles
Hoshin
Kanri
More Information
This framework is explained in more detail in our
document Hoshin Kanri Strategy Deployment
DETAILS
Topics covered include: underlying principles of

Hoshin Kanri, PDCA Approach, Hoshin Kanri
Tools, Elements of Hoshin Kanri, Management
Reviews, and Critical Success Factors
File size: 11.8MB
Seller: OEConsulting
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

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Contents
Overview
Summary
Appendix

44
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
1
Porters Five
Forces
BCG Growth-Share
Matrix
Blue Ocean
Strategy
STRATEGY EXECUTION
7
Marketing Mix
(4/7 Ps)
SWOT Analysis
11
Product Lifecycle
9
PEST Analysis
10
Balanced
Scorecard
Organizational
Hurdles
12
Hoshin Kanri

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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

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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

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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
https://flevy.com/seller/pptlab
LEARN PPT
https://flevy.com/seller/learnppt
OE CONSULTING
https://flevy.com/seller/oeconsulting
Classic Business Frameworks. E.g.,

McKinsey 7-S Model, Balanced
Scorecard, Christensen's Innovation, etc.
Business frameworks and toolkits. E.g.,

Corporate Strategy, Change
Management, Operational Improvement.
Topics include Lean Management,

Quality Management, and
Strategic Planning & Deployment.
STRATICX
https://flevy.com/seller/straticx
OEC
https://flevy.com/seller/oec
DOCUMENTS FILES
https://flevy.com/seller/documentsfiles
Frameworks on Corporate and BU

Strategy, Business Transformation, M&A,
and Operational Improvement.
Frameworks focused on delivering

Operational Improvement (e.g. 8D
Problem Solving, Lean, Six Sigma).
Consulting frameworks and documents

spanning Strategy, Operations, Finance.
PAUL ALLEN SMITH

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Frameworks related to IT and Risk. E.g.,

ITIL, PRINCE2, Risk Management.
Frameworks related to Operations

Management, Process Improvement, and
Manufacturing.
Corporate Communications frameworks

from McKinsey specialists with combined
40+ years experience.
Looking for more business frameworks? Check out our 10 must-have frameworks:
http://flevy.com/business-frameworks

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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
We have 40+ Business Toolkits
Strategic Planning Toolkit

https://flevy.com/business-toolkit/strategic-planning-sp
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

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Contents
Overview
Summary
Appendix

50
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.

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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

Flevy Business Primer

Introduction to Business Strategy

Consumer Adoption Curve

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

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Strategy Development Frameworks

Strategy Execution Frameworks

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Strategy without execution is merely theoryin this document, we will

Blue Ocean Strategy

Consumer Adoption Curve

Porters Five Forces

BCG Growth-Share Matrix

Marketing Mix (4/7 Ps)

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In this section, we will cover 9 strategy frameworks6 focus on external,

Blue Ocean Strategy

Marketing Mix (4/7 Ps)

These first 6 frameworks focus more on Industry and

Consumer Adoption Curve

These 3 frameworks are more Product

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BALANCE & ALLIANCE

DESCRIPTION The industries operating in

the Opening stage include

In the Scale stage, major

In the Focus stage,

In the final stage,

Consolidation-Endgame Curve Diagram

BALANCE & ALLIANCE

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

This framework is explained in detail in the

Topics covered include: stages of consolidation,

File size: 800KB

Learn more about the Consolidation-Endgame Curve here:

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Porters Five Forces

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Porters Five Forces

Threat of New Entrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

A supplier group is powerful when:

Intense rivalry results from:

A buyer group is powerful when:

Pressure from Substitute Products

Search for products that can perform the same

Take offensive or defensive actions to create a

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Porters Five Forces

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Complete Business Frameworks Guide

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BCG Growth-Share Matrix