My most used strategy tool is the Strategy Map. In his Competitive Strategy book, Michael Porter describes them in his chapter on structural analysis within industries. He defines Strategic Groups as laid out or organized by strategic dimensions. This is my version of it and how I use it.

Porter's Five Forces is a very popular framework for analyzing the competitive dynamics of an industry. It is well taught to MBA students all over the world, yet I admit it is the one I use the least in Competitive Analysis. Not because I don’t find it useful, but rather because it’s a snapshot in time for an industry structure.

The premise is that by understanding the five forces, a company can identify the key factors that determine the competitiveness of an industry, and use this information to make informed decisions about how to position itself in the market.

Michael Porter is considered the father of Corporate Strategy, by many. He is a pioneer. Although he is well known for his Porter’s Five forces analysis framework, it is his Four Corners model the one I find most helpful in determining what to do, which actions to take. In Competitive Intelligence, this is considered an essential tool for early warning.

The Four Corners model is a predictive tool that helps in determining a competitor’s course of action, by looking at the firms motivations and actions. It is by adding the perspective of motivations in the form of values, culture, mindset, and self-reflection, what makes it powerful in the most likely future strategy of a player.

Product Management teams, are constantly looking for how to make their products better. They are always hungry for information that will make it more competitive, and more appealing than a competitive offer.

In Competitive Strategy we get frequently asked for a “Competitive Gap Analysis” to help product management answer that question. But what is it that they really want? Are they looking for justifications of a hypothesis or legitimate input on the product positioning? What product management needs is a full blown competitive gap analysis, not a side by side product comparison. The difference may be considered subtle by some, but it certainly makes a big difference.