3
Chapter 2 - Basic Strategy
Frameworks
“A picture is worth a thousand words.”
--- Anonymous
Introduction to Matrices and Frameworks
As a general rule, a 2 by 2 or a 3 by 3 matrix can provide
direction and structure to any strategic analysis. After all, a
picture is worth a thousand words. If invited to make a final
presentation or summarize a case analysis, you should strive
for a few 2 by 2 grids to map some of your key conclusions.
This requires nothing but a lot of practice, once you
understand how top-notch consultants formulate their 2 by 2s.
This is how you create your own 2 by 2 or 3 by 3 matrix. Any
business problem to be analyzed will have multiple attributes.
List these attributes in the order of importance. Then, take the
two most important attributes, and plot them on X and Y axes.
For example, in the Ansoff Matrix, Products and Markets are
plotted on the X and Y axes, respectively. So, the two most
important attributes for the business process / problem the
Ansoff Matrix is designed to solve are Products and Markets.
If two distinct values emerge for each axis, the result is a 2 by
2 matrix. For example, in the Ansoff Matrix, the values for
the Markets parameter / attribute plotted on the Y-axis are
Existing Market and New Market; and the values for the
Products parameter / attribute plotted on the X- axis are
Existing Products and New Products.
Similarly, if both axes can accommodate three distinct values,
such as high, medium, and low; or tall, grande, and venti; a 3
by 3 matrix framework can emerge to provide the needed
initial structure for subsequent strategic analysis. For
Copyrighted Material
