Strategic Case Analysis
4
examples of 3 x 3 matrices, please check the GE Portfolio
Matrix framework in the “Advanced Frameworks” chapter,
and the Buyer-Supplier Matrix within the Porter’s Five
Forces Framework.
However, strategy is complex, for which an established 2 by 2
framework such as the BCG matrix or the Ansoff matrix; or
other elementary frameworks, such as Porter's Five Forces,
the Five C's, and the Four P's can only be starting points. You
can show your originality by coming up with your own 2 by 2
matrix, while solving a case. Also, having a good grasp of all
the frameworks described in this book, including advanced
frameworks like NPV, CAPM, Double Marginalization, the
Porter Diamond, and the VAL-2 Customer Segmentation
methodology; will help you apply these, as appropriate, to
solve business problems.
Framework #1 --- SWOT
Strengths, Weaknesses, Opportunities, Threats
Most people understand SWOT to be strengths, weaknesses,
opportunities, and threats. However, most get confused, or
are not clear, as to what differentiates strengths from
opportunities, or weaknesses from threats. As per the 2 by 2
matrix on the next page, strengths and weaknesses are
internal in context / focus, whereas opportunities and threats
pertain to the external marketplace, or the competitive
dynamics of a product / business.
SWOT is a time-honored framework used by competitive
analysts in every industry one can think of: high-tech /
biotech, consumer products, manufacturing, services, and
retail.
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