STRATEGY
     Overview of competitive strategy: What are 
        the high level goals of any company?
     Differentiation and pricing power
     Survival and profitability
     Porter’s Five Forces Model
     How to assess the landscape of your market
     “Blue Ocean” Strategy*
     A toolkit to identify areas to explore – creating a competition-
      free zone to reach the above objectives
                                End goal: 
                                End goal: 
                                End goal: 
                                End goal: 
             Understanding your business allows you to 
             Understanding your business allows you to 
              Understanding your business allows you to 
              Understanding your business allows you to 
                            pick smart projects
                            pick smart projects
                             pick smart projects
                             pick smart projects
 *Kim, W.C. and Mauborgne, R., 2005, Blue Ocean Strategy – How To Create Uncontested Market Space and Make 
 *Kim, W.C. and Mauborgne, R., 2005, Blue Ocean Strategy – How To Create Uncontested Market Space and Make 
        2
 the Competition Irrelevant, HBS Press. (We’ll also be using their HBR articles for brevity)
 the Competit2ion Irrelevant, HBS Press. (We’ll also be using their HBR articles for brevity)
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          LECTURE 2: SWOT & PORTER’S 5 
          FORCES MODEL
          Business strategy overview:
           Strengths, weaknesses, opportunities & threats (SWOT)
           Porter’s five forces model
          Class discussion: Microsoft’s market position and future 
             options/opportunities (freeform SWOT analysis + application 
             of Porter’s)
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         INTRODUCTION TO SWOT
          SWOT ANALYSIS:  THINKING 
          STRATEGICALLY
      Strengths
       What aspects of a firm are its strengths?  
          Can be structural, market based, IP, etc.
          What gives a firm its competitive advantages?
      Weaknesses
       What aspects of a firm are weak?
          Can be structural, legal, market based, etc.
          What hinders a firm from competing well?
      Opportunities
       What areas/markets are there that a firm can grow into?
       Do the above strengths contribute, or do new capabilities need to be 
        created?
      Threats
       What will stop a firm from growing into new spaces?
       What out there threatens a firm’s existing market share and product line?
       What is the nature of this threat? 
          Competition?  
          Political environment?  Something else?
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      SWOT SCORECARD
      Strengths:                               Threats:
                                                Threats:
      Weaknesses:                              Opportunities:
                                                Opportunities:
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