Strategic analysis is a process to understand the organization’s environment and competitive landscape to formulate informed business decisions.
Let’s look at some of the strategic tools you can use to improve your business decision-making process.
- Business model canvas
- Blitzscaling canvas
- Value innovation and blue ocean strategy
- Growth hacking process
- Pirate metrics
- Engines of growth
- RTVN model
- Sales cycle
- Comparable analysis
- Porter’s five forces
- Aida model
- PESTEL analysis
- Technology adoption curve
- Business model essence
- FourWeekMBA business model framework
- TAM, SAM, and SOM
The business model canvas aims to provide a keen understanding of your business model to provide strategic insights about your customers, product/service, and financial structure;
so that you can make better business decisions.
In this article, I’ll focus on the Blitzscaling business model canvas. This is a model based on the concept of Blitzscaling.
That is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency. It focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.
Pretotyping is a mixture of the words “pretend” and “prototype,” and it is a methodology used to validate business ideas to improve the chances of building a product or service that people want.
The pretotyping methodology comes from Alberto Savoia’s work summarized in the book “The Right It: Why So Many Ideas Fail and How to Make Sure Yours Succeed.”
This framework is a mixture of the words “pretend” and “prototype,” and it helps to answer such questions (about the product or service to build) as: Would I use it? How, how often, and when would I use it? Would other people buy it? How much would they be willing to pay for it? How, how often, and when would they use it?
A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created.
At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the cost-value trade-off is broken.
Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.
Growth hacking is a process of rapid experimentation, coupled with the understanding of the whole funnel, where marketing, product, data analysis, and engineering work together to achieve rapid growth.
The growth hacking process goes through four key stages of analyzing, ideating, prioritizing, and testing.
Venture capitalist, Dave McClure, coined the acronym AARRR which is a simplified model that enables to understand what metrics and channels to look at. At each stage for the users’ path toward becoming customers and referrers of a brand.
He described sustainable growth as following a simple rule, “new customers come from the actions of past customers.”
The three engines of growth are the sticky engine, the viral engine, and the paid engine. Each of those can be measured and tracked by a few key metrics, and it helps plan your strategic moves.
The RTVN model is a straightforward framework that can help you design a business model when you’re at the very early stage of figuring out what you need to make it succeed.
A sales cycle is the process that your company takes to sell your services and products.
In simple words, it’s a series of steps that your sales reps need to go through with prospects that lead up to a closed sale.
Planning ahead of time the steps your sales team needs to take to close a big contract can help you grow the revenues for your business.
A comparable company analysis is a process that enables the identification of similar organizations to be used as a comparison to understand the business and financial performance of the target company.
To find comparables, you can look at two key profiles: the business and economic profile. From the comparable company analysis, it is possible to understand the competitive landscape of the target organization.
Porter’s Five Forces is a model that helps organizations to gain a better understanding of their industries and competition.
It was published for the first time by Professor Michael Porter in his book “Competitive Strategy” in the 1980s.
The model breaks down industries and markets by analyzing them through five forces which you can use to have a first assessment of the market you’re in.
AIDA stands for attention, interest, desire, and action. This is a model which is used in marketing to describe the potential journey a customer might go through, before purchasing a product or service. Variation of the AIDA model is the CAB model and the AIDCAS model.
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization.
This is a critical step that helps organizations identify potential threats and weaknesses. That can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.
The technology adoption curve is a model which goes through five stages. Each of those stages (innovators, early adopters, early majority, late majority, and laggard) has a specific psychographic that makes that group of people ready to adopt a tech product.
A Business Model Essence, according to FourWeekMBA, is a way to find the critical characteristics of any business to have a clear understanding of that business in a few sentences.
That can be used to analyze existing businesses. Or to draft your Business Model and keep a strategic and execution focus on the key elements to be implemented in the short-medium term.
An effective business model has to focus on two dimensions: the people dimension and the financial dimension. The people dimension will allow you to build a product or service that is 10X better than existing ones and a solid brand.
The financial dimension will help you develop proper distribution channels by identifying the people that are willing to pay for your product or service and make it financially sustainable in the long run.
Understanding your TAM, SAM and SOM can help you navigate the market you’re in and to have a laser focus on the market you can reach with your product and service.
Other business resources:
- What Is a Business Model? 30 Successful Types of Business Models You Need to Know
- The Complete Guide To Business Development
- Business Strategy: Definition, Examples, And Case Studies
- What Is a Business Model Canvas? Business Model Canvas Explained
- Blitzscaling Business Model Innovation Canvas In A Nutshell
- What Is a Value Proposition? Value Proposition Canvas Explained
- What Is a Lean Startup Canvas? Lean Startup Canvas Explained
- What Is Market Segmentation? the Ultimate Guide to Market Segmentation
- Marketing Strategy: Definition, Types, And Examples
- Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
- How To Write A Mission Statement
- What is Growth Hacking?
- Growth Hacking Canvas: A Glance At The Tools To Generate Growth Ideas