The Value of Strategic Frameworks

Several factors contribute to the success of a company in varying degrees which make it impossible to capture all the aspects of a successful strategy in a generic model.  However, looking at strategic frameworks can offer key points of reference in developing a successful strategy, and highlight the dimensions that are critical to becoming the industry leader.  While some models offer insights into the internal aspects of a firm such as management practices, resource capabilities and core competencies, others encompass the external aspects that relate to customers, suppliers, and competitors.

To a great extent, strategic frameworks can be used as tools in the strategic planning process of a firm to evaluate critical success factors and to identify key strategic dimensions that would lead to a sustainable competitive advantage. A firm can also assess how it is positioned relative to its competitors on these axes, and identify where it must focus to grow its market share.

However, just like no single theory adequately explains all the factors influencing success of individuals, these models have limitations, and should be used in context of their boundary conditions. Often, by adapting these models to the context of the company or the environment it operates in, a firm can gather invaluable insights that will help in its strategy forumlation.