A business strategy gives a business an overall direction that differentiates it from
competitors and positions it within the competitive forces at work in the industry. This
business strategy plan sets forth how an enterprise will create and capture value in a
particular service or product market. The process of creating a business strategy
should reflect both the organization’s internal culture and its relationships with external
entities. The document is useful to any business owner or employee seeking to
analyze, evaluate, or develop a business strategy.
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Table of Contents
1. The Industry Defined ................................................................................................................................ 4
1.1. Products and Services ........................................................................................................................ 4
1.2. Geographies ....................................................................................................................................... 4
2. Assessment of the Five Forces that Shape Competition. .......................................................................... 4
2.1. Assessment of Buyers as a Competitive Force .................................................................................. 5
2.2. Assessment of Suppliers as a Competitive Force .............................................................................. 5
2.3. Assessment of Possible Entrants as a Competitive Force .................................................................. 6
2.3.1. Supply-Side Scale Advantage ..................................................................................................... 6
2.3.2. Demand-Side Scale Advantage ................................................................................................... 6
2.3.3. Customer Switching Costs .......................................................................................................... 6
2.3.4. Capital Requirements .................................................................................................................. 7
2.3.5. Incumbent Advantages ................................................................................................................ 7
2.3.6. Access to Distribution Channels ................................................................................................. 7
2.3.7. Government Policy ..................................................................................................................... 8
2.3.8. Potential Retaliation .................................................................................................................... 8
2.3.9. Summary of Assessment of Possible Entrants as a Competitive Force ...................................... 8
2.4. Assessment of Rivals as a Competitive Force ................................................................................... 8
2.4.1. Intensity of Rivalry ..................................................................................................................... 9
2.4.2. Basis of Rivalry........................................................................................................................... 9
2.4.3. Summary of Assessment of Rivals as a Competitive Force........................................................ 9
2.5. Assessment of Substitutes as a Competitive Force .......................................................................... 10
3. Industry Analysis .................................................................................................................................... 10
3.1. Industry Profitability ........................................................................................................................ 10
3.2. Trends Identified .............................................................................................................................. 11
3.3. Key Aspects ..................................................................................................................................... 11
4. Company Culture Diagnosis ................................................................................................................... 11
5. Goal of the Strategy ................................................................................................................................ 12
6. Identify the Scope of the Strategy through Key Customer Segments ..................................................... 12
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7. Explain Your Competitive Advantage .................................................................................................... 13
7.1. Product ............................................................................................................................................. 13
7.2. Price ................................................................................................................................................. 13
7.3. Promotion......................................................................................................................................... 13