| name | strategy-craft |
| description | Segmentation, differentiation, and strategic thinking frameworks. Use when building product strategy, analyzing competition, or making strategic bets. |
Strategy Craft Skill
Purpose
Strategy is a function of segmentation and differentiation. This skill provides the frameworks for both, plus the connective tissue that turns analysis into a strategy document that actually drives decisions.
Based on Shreyas Doshi's strategy framework and Hamilton Helmer's 7 Powers.
Core Principle
Strategy is about making choices that are hard to reverse and create compounding advantages.
Good strategy has three properties:
- It says no. If your strategy doesn't reject opportunities, it's not a strategy.
- It's different. If a competitor could write the same strategy, it's not differentiated.
- It compounds. Each decision makes the next decision easier.
Segmentation Framework
The Rule: Needs Over Demographics
Segment by what users NEED and DO, not who they ARE.
Good segmentation dimensions (in priority order):
- Needs-based: What specific problems do they need solved?
- Behavioral: How do they currently solve the problem?
- Context of use: What environment are they operating in?
Bad segmentation dimensions:
- Demographics (age, gender, location) — too broad, don't predict behavior
- Psychographics (personality types) — unmeasurable, untargetable
- Composite personas (marketing fiction) — combine segments that behave differently
5-Point Validation Test
Every segment must pass ALL five:
| Test | Question |
|---|
| Consistent needs | Do members share similar needs distinct from other segments? |
| Product-specific | Is this relevant to YOUR product, not just the market? |
| Targetable | Can you predictably find and reach these people? |
| Prioritizable | Can you rank segments meaningfully? |
| Winnable | Can you realistically serve them better than alternatives? |
Segment Scoring
| Dimension | What It Measures |
|---|
| Reach | How large is the segment? |
| Underserved degree | How poorly served by current alternatives? |
| Differentiation potential | Can you build something meaningfully better for them? |
| Ease of targeting | Can you find and reach them efficiently? |
Differentiation Framework
Differentiation is a function of:
- User needs — What the priority segment actually needs
- Alternatives — What they currently use (including "do nothing")
- Unique assets — What you have that others don't
- Industry direction — Where the market is heading
- Creative choices — Non-obvious design decisions
- Chosen segments — Who you've decided to serve
7 Powers (Hamilton Helmer)
| Power | Definition | How to Build It |
|---|
| Scale Economies | Unit cost declines with volume | Invest in infrastructure that amortizes |
| Network Effects | Value increases with more users | Build features where more users = better product |
| Switching Costs | Users face cost to leave | Make your product hold important user data, integrations, workflows |
| Branding | Higher perceived value for your brand | Consistent quality, emotional connection, community |
| Cornered Resource | Exclusive access to valuable input | Proprietary data, key hires, exclusive partnerships |
| Counter-Positioning | New model incumbents can't adopt | Build something that would cannibalize competitors' core business |
| Process Power | Organization capabilities that can't be copied | Deep domain expertise, operational excellence, culture |
Differentiation Classification
| Type | What It Means | Priority |
|---|
| Differentiator | Users choose us BECAUSE of this | Invest heavily |
| MMR | Users reject us WITHOUT this | Build to parity |
| Neutralizer | Removes a reason to NOT choose us | Build to "good enough" |
Strategy Template
One-Sentence Strategy
"[Product] wins by [differentiation] for [segments] against [alternatives]."
Must be: specific, choosy, actionable, falsifiable.
Full Strategy Structure
- One-sentence strategy
- Target segments — Who we serve, who we don't, and why
- Market context & map — Where the market is headed, who the players are
- Strategic pillars (2-6) — The bets that define our differentiation
- Non-priorities — What we're deliberately NOT doing (the most important section)
- 1-2 year roadmap — Now/Next/Later with metrics
- Leading & lagging indicators — 2-4 metrics that tell us if the strategy is working
Non-Priorities Framework
The most important part of strategy:
| Category | Description |
|---|
| Trade-offs | "We choose X over Y because..." |
| Lower priority | "We acknowledge Z matters but won't invest because..." |
| Table stakes | "We'll maintain parity on [features] but won't differentiate here" |
| Below table stakes | "Competitors do [X] and we deliberately don't because..." |
| Reassessment triggers | "We'd reprioritize if [specific market change]" |
Strategy Stress Test
Before finalizing any strategy, pass these 5 tests:
- Is it a real strategy? Does it make hard choices, or does it say "we'll do everything"?
- Can you say no with it? Give an example of an opportunity you'd reject.
- Is it differentiated? Could a competitor write the same strategy?
- Is it achievable? Do you have the resources and capabilities?
- Is it measurable? Can you tell in 6 months if it's working?
