# 3A Strategy 8-Step Framework

> **Core Value**: A research framework integrating strategic perspectives (3A) with a full industry analysis workflow (8 Steps), used to systematically understand industries, identify opportunities, and form strategic judgments
>
> **Original Framework**: Eric Young
>
> **One-liner**: A complete methodology from industry landscape understanding to strategic decision convergence

---

> **Case Boundary**: Company/industry cases in this file are illustrative examples for framework structure and reasoning, not current factual claims by Alpha Insights. Before reusing any numbers, shares, dates, or conclusions in a live study, re-check sources and record them in the Evidence Claim Ledger.

## Overview

The **3A Strategy 8-Step Framework** is an integrated framework combining strategic perspectives with a full industry analysis workflow. It fuses:
- **3A Strategic Dimensions** (Aspiration / Ability / Accessibility) — providing strategic convergence
- **8-Step Analysis Dimensions** (Industry Definition, Development Stage, Competitive Landscape, Value Chain, Profit Model, Channels, Merchant Profile, User Research) — providing comprehensive analytical coverage

**Core Design Principles**:
- **3-by-8 Matrix**: 3A as rows (strategic layer), 8 Steps as columns (analysis layer)
- **Input-Output Closed Loop**: 8 Steps are input (collect industry information); 3A is output (converge into strategic judgments)
- **B2B Adaptation**: Specifically includes a "Merchant Profile" step, strengthening the tangibility of B2B business research

---

## Framework Structure

```
┌─────────────────────────────────────────────────────────────────┐
│                  3A Strategy 8-Step Framework                    │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│   Strategic Layer (Why)     Analysis Layer (What)   Output (How)│
│   ┌──────┬──────┬──────┐                                       │
│   │Aspi- │Abil- │Access│  ← 3A Strategic Dimensions             │
│   │ration│ity   │ibil- │                                       │
│   │      │      │ity   │                                       │
│   └──┬───┴──┬───┴──┬───┘                                       │
│      │      │      │                                           │
│      ▼      ▼      ▼                                           │
│   ┌──────────────────────────┐                                  │
│   │ 1  2  3  4  5  6  7  8  │  ← 8-Step Analysis Dimensions    │
│   │Def Stage Comp VC Prof Chan Merch User│                      │
│   └──────────────────────────┘                                  │
│                                                                 │
│   Output: Strategic Judgment + Opportunity List + Action Plan   │
└─────────────────────────────────────────────────────────────────┘
```

### Three Rows: 3A Strategic Dimensions

| Dimension | English | Core Question | Primary Analysis Steps |
|-----------|---------|--------------|----------------------|
| **Aspiration** | Aspiration | Is the industry attractive? | 1 Industry Definition, 2 Development Stage, 8 User Research |
| **Ability** | Ability | Do we have advantages? | 3 Competitive Landscape, 4 Value Chain, 7 Merchant Profile |
| **Accessibility** | Accessibility | Is it commercially viable? | 5 Profit Model, 6 Channels |

### Eight Columns: Analysis Dimensions Overview

| Step | Theme | Core Analysis Content | Key Output |
|------|-------|----------------------|-----------|
| **1** | Industry Definition & Classification | Define industry boundaries, segment track classification | Industry definition, segment map |
| **2** | Development Stage & Trends | Nascent/growth/mature/decline stage assessment | Lifecycle position, trend judgment |
| **3** | Competitive Landscape | Concentration analysis, Five Forces, player roster | Competitive intensity, major players |
| **4** | Value Chain | Industry chain structure, value distribution by segment | Value chain map, core segments |
| **5** | Profit Model & Profitability | Gross/net margin, cost structure | Profit model, profit pool distribution |
| **6** | Channels | Offline/online, direct/dealer, channel tiers | Channel structure, reach pathways |
| **7** | Merchant Profile | Merchant status, competitors, strategy, pain points | Merchant personas, opportunity points |
| **8** | User Research | Consumer behavior journey, user personas | User needs, pain point map |

---

## Usage Steps

### Step 1: Clarify the Strategic Question (5 minutes)

Answer these questions:
- **Who are we?** — Company/business/role
- **Why are we doing this research?** — Decision purpose (enter/don't enter, invest/don't invest, how to respond to competition, etc.)
- **Which A is most unclear?** — Aspiration unclear? Ability uncertain? Accessibility questionable?

### Step 2: Select Analysis Dimensions (10 minutes)

Based on the strategic question, choose 5-7 steps from the eight (not all required):

| Strategic Question Type | Recommended Step Combination |
|------------------------|------------------------------|
| **Should we enter market XX?** | 1 Definition, 2 Stage, 3 Competition, 4 Value Chain, 5 Profitability, 6 Channels, 8 Users |
| **How to respond to XX competition?** | 3 Competition, 4 Value Chain, 5 Profitability, 7 Merchants, 8 Users |
| **Are there opportunities in XX industry?** | 1 Definition, 2 Stage, 3 Competition, 5 Profitability, 6 Channels |
| **Where are our advantages?** | 3 Competition, 4 Value Chain, 7 Merchants |
| **What do users need?** | 1 Definition, 8 Users, 2 Stage |

### Step 3: Execute Analysis (2-4 hours)

For each selected step:
1. Read the corresponding detailed analysis guide in this framework
2. Collect data (reference `resources/data_sources.md`)
3. Fill in the analysis template
4. Note data sources and confidence levels

### Step 4: Strategic Synthesis (30 minutes)

Return to 3A dimensions and answer:
- **Aspiration**: Based on Steps 1, 2, 8 — how attractive is the industry? Do we want to do this?
- **Ability**: Based on Steps 3, 4, 7 — do we have competitive advantages? Can we do this?
- **Accessibility**: Based on Steps 5, 6 — is the business model viable? Are channels reachable?

### Step 5: Form Judgment (15 minutes)

Synthesize the 3A analysis to form strategic judgment:
- **Enter / Don't enter**
- **Invest / Don't invest**
- **Differentiation / Cost leadership / Focus strategy**
- **Partner / Build in-house / Acquire**

---

## Eight Steps Explained

---

### Step 1: Industry Definition & Classification

**Analysis Purpose**: Define research boundaries to prevent scope ambiguity from invalidating analysis

**Core Questions**:
- What is the industry definition? Where are the boundaries?
- What are the sub-segments? What are the classification criteria?
- Which companies belong to this industry? Which don't?

**Key Methods**:
- Industry definition (text description)
- Sub-segment classification tree
- Major player attribution mapping

**Data Sources**:
- Industry reports (iResearch, Analysys, IDC, etc.)
- Public company prospectuses/annual reports
- Industry association/statistics bureau classifications

**Output Template**:
```markdown
#### Industry Definition
[Define the industry in one sentence]

#### Sub-segments
- Track A: [Definition + representative companies]
- Track B: [Definition + representative companies]
- Track C: [Definition + representative companies]

#### Boundary Notes
- Includes: [...]
- Excludes: [...]
```

**3A Link**: Primarily serves **Aspiration** — clarifying "which industry do we want to enter"

---

### Step 2: Development Stage & Trends

**Analysis Purpose**: Assess industry lifecycle position, identify development trends

**Core Questions**:
- Is the industry in nascent, growth, mature, or decline stage?
- What are the key trends? (Growth, consolidation, technology disruption, etc.)
- What is the 3-5 year outlook?

**Key Methods**:

| Lifecycle Stage | Sales | Profit Margin | Company Count | Penetration | Business Focus |
|----------------|-------|--------------|---------------|-------------|---------------|
| **Nascent** | None or low | Loss (high investment) | Few → rapidly growing | Low | Product refinement, market education |
| **Growth** | Rapid growth | High profits | Continuously increasing | Rapidly rising | Expansion, market share grab |
| **Mature** | Slow growth | Margin pressure | Beginning to decrease | High penetration | Efficiency, differentiation |
| **Decline** | Declining | Most losses | Mass exits | Declining | Exit/transform |

**Data Sources**:
- Historical industry size data (securities research, industry reports)
- Company count changes (Tianyancha, Qichacha)
- Penetration rate data (vertical data providers)

**Output Template**:
```markdown
#### Lifecycle Assessment
- Current stage: [Nascent/Growth/Mature/Decline]
- Basis: [Sales growth rate, profit margins, company count, penetration rate]

#### Key Trends
- Trend 1: [Description + data support]
- Trend 2: [Description + data support]

#### 3-5 Year Outlook
[Forecast based on trends]
```

**3A Link**: Primarily serves **Aspiration** — assessing "is the industry attractive, is the timing right"

---

### Step 3: Competitive Landscape

**Analysis Purpose**: Understand industry competitive intensity and major players

**Core Questions**:
- Is the industry concentrated or fragmented? What is CR5/CR10?
- Who are the major players? What are their shares?
- How intense is competition? (Five Forces)

**Key Methods**:
- **Industry concentration**: CR5 (top 5 share), CR10
- **Concentration curve**: CR5/CR10 historical trend
- **Player roster**: Classified by business model/capital camp/domestic-foreign
- **Five Forces**: Supplier power, buyer power, new entrant threat, substitute threat, existing competition

**Data Sources**:
- Market share data (securities research, consulting reports)
- Player information (websites, Tianyancha, prospectuses)
- Competitive behavior (news, earnings calls)

**Output Template**:
```markdown
#### Industry Concentration
- CR5: [X]%
- CR10: [Y]%
- Trend: [Rising/Stable/Declining]

#### Major Player Roster
| Player | Share | Business Model | Capital Backing | Domestic/Foreign |
|--------|-------|---------------|----------------|-----------------|
| ... | ... | ... | ... | ... |

#### Five Forces Analysis
- Supplier power: [High/Medium/Low] — [Rationale]
- Buyer power: [High/Medium/Low] — [Rationale]
- New entrant threat: [High/Medium/Low] — [Rationale]
- Substitute threat: [High/Medium/Low] — [Rationale]
- Existing competition: [Intense/Moderate] — [Rationale]
```

**3A Link**: Primarily serves **Ability** — assessing "what is our competitive position"

---

### Step 4: Value Chain

**Analysis Purpose**: Identify value distribution and core companies across industry chain segments

**Core Questions**:
- What are the industry chain segments?
- What is each segment's scale, players, and profitability?
- Which segment is most valuable? Which is the strategic control point?

**Key Methods**:
- **Value chain map**: Upstream → Midstream → Downstream
- **Segment analysis**: Scale, players, trends, profitability, core companies
- **Capital flow**: Where money flows from and to

**Data Sources**:
- Industry chain maps (consulting reports, industry research)
- Gross margin comparison by segment (public company filings)
- Core company identification (market share, technology barriers)

**Output Template**:
```markdown
#### Value Chain Map
Upstream → [Segment A] → [Segment B] → Midstream → [Segment C] → Downstream → [Segment D] → End User

#### Segment Analysis
| Segment | Scale | Major Players | Gross Margin | Trend | Core Company |
|---------|-------|--------------|-------------|-------|-------------|
| ... | ... | ... | ... | ... | ... |

#### Core Segment Identification
- Most valuable segment: [Segment name] — [Rationale]
- Strategic control point: [Segment name] — [Rationale]
```

**3A Link**: Primarily serves **Ability** — assessing "where in the chain do we have value"

---

### Step 5: Profit Model & Profitability

**Analysis Purpose**: Understand how the industry makes money and profit pool distribution

**Core Questions**:
- What are the main profit models?
- What are gross and net margin levels?
- How does profitability differ by player scale?
- Where are profit pools distributed?

**Key Methods**:
- **Gross margin**: Reflects business model
- **Net margin**: Reflects company health
- **Cost structure**: Fixed vs variable costs
- **Profit model types**: Subscription, transaction commission, advertising, hardware sales, etc.

**Data Sources**:
- Public company filings (gross margin, net margin)
- Prospectuses (cost structure disclosures)
- Industry reports (profit pool analysis)

**Output Template**:
```markdown
#### Profit Models
- Model A: [Description + representative companies]
- Model B: [Description + representative companies]

#### Profitability
| Player Type | Gross Margin | Net Margin | Cost Structure Characteristics |
|------------|-------------|-----------|------------------------------|
| Top players | ... | ... | ... |
| Mid-size | ... | ... | ... |
| Small players | ... | ... | ... |

#### Profit Pool Distribution
- Most profitable segment: [Segment name]
- Thinnest margin segment: [Segment name]
```

**3A Link**: Primarily serves **Accessibility** — assessing "can we make money commercially"

---

### Step 6: Channels

**Analysis Purpose**: Understand how products/services reach users

**Core Questions**:
- What is the channel structure? (Offline vs online, direct vs distribution)
- What is channel concentration?
- What are channel trends? (Digitization, flattening, etc.)

**Key Methods**:
- **Channel structure**: Offline/online split
- **Channel types**: Direct, distribution, agency, platform
- **Channel tiers**: Tier-1, tier-2, tier-3 distributors
- **Channel concentration**: Top distributor share

**Data Sources**:
- Company filings (channel disclosures)
- Channel research (distributor interviews)
- E-commerce platform data (Tmall, JD.com, Pinduoduo)

**Output Template**:
```markdown
#### Channel Structure
- Offline: [X]% — [Main channel types]
- Online: [Y]% — [Main platforms]

#### Channel Types
- Direct: [Share + characteristics]
- Distribution: [Share + tiers + geographic division]

#### Channel Trends
- Trend 1: [Description]
- Trend 2: [Description]
```

**3A Link**: Primarily serves **Accessibility** — assessing "can we effectively reach users"

---

### Step 7: Merchant Profile (Optional, recommended for B2B)

**Analysis Purpose**: Deeply understand typical merchants/clients, identify specific opportunity points

**Core Questions**:
- What is the typical merchant's current situation? (Organization, sales channels, share, profitability, etc.)
- What competitor products are merchants using? Satisfaction levels?
- What is the merchant's strategy?
- What are the merchant's pain points?

**Key Methods**:
- **Merchant status**: Organization structure, sales channels, market share, profit model, customer structure, competitive advantages, target budgets
- **Competitive analysis**: Competitor products in use, satisfaction, our competitive advantages
- **Merchant strategy**: Inferred from status and competition
- **Need pain points**: Inferred from strategy

**Data Sources**:
- Merchant interviews
- Merchant filings/websites
- Competitor case studies

**Output Template**:
```markdown
#### Merchant Status
- Organization: [Description]
- Sales channels: [Description]
- Market share: [X]%
- Profit model: [Description]
- Customer structure: [Description]
- Competitive advantages: [Description]
- Target budget: [Description]

#### Competitive Analysis
- Competitor products in use: [Product name + satisfaction]
- Our competitive advantages: [Description]

#### Merchant Strategy
[Strategic judgment based on status and competition]

#### Need Pain Points
- Pain point 1: [Description]
- Pain point 2: [Description]
```

**3A Link**: Primarily serves **Ability** — assessing "do our capabilities match merchant needs"

---

### Step 8: User Research

**Analysis Purpose**: Understand end-user needs, behaviors, and pain points

**Core Questions**:
- What is the user persona? (Age, gender, city, income, etc.)
- What is the user behavior journey? (Customer Journey)
- Where are user pain points?

**Key Methods**:
- **User personas**: Demographics + behavioral characteristics
- **Consumer behavior journey**: Pre-engagement → During engagement → Post-engagement (e.g., healthcare journey)
- **Experience curve**: Experience scores per stage
- **Research methods**: In-depth interviews, focus groups, surveys, big data analysis

**Data Sources**:
- User research (surveys, interviews)
- Behavioral data (app analytics, third-party data)
- Research reports (consumer studies)

**Output Template**:
```markdown
#### User Persona
- Age: [Distribution]
- Gender: [Ratio]
- City: [Distribution]
- Income: [Distribution]

#### Consumer Behavior Journey
| Stage | Objective | Behavior | Experience Score |
|-------|----------|---------|-----------------|
| Stage 1 | ... | ... | ... |
| Stage 2 | ... | ... | ... |

#### Core Pain Points
- Pain point 1: [Description + affected user percentage]
- Pain point 2: [Description + affected user percentage]
```

**3A Link**: Primarily serves **Aspiration** — assessing "what are users' real needs"

---

## Relationship with Other Frameworks

### Relationship with PESTEL
- PESTEL can supplement Step 1 (Industry Definition) and Step 2 (Development Stage)
- Used for macro environment scanning, but this framework focuses more on the industry itself

### Relationship with Five Forces
- Five Forces is one of the core analysis methods within Step 3 (Competitive Landscape)
- This framework integrates it into a larger analytical framework

### Relationship with SWOT
- SWOT can serve as a tool for Step 4 (Strategic Synthesis)
- This framework's output can directly feed into SWOT for strategic synthesis

### Relationship with Original 3A Framework
- The original 3A framework (`3a_strategy.md`) is the "strategic layer condensed version" of this framework
- This framework adds the 8-step analysis dimensions for a more complete analytical workflow

---

## Output Template

### Industry Research Report Structure

```markdown
# [Industry Name] Industry Research — 3A Strategy 8-Step Analysis

## Executive Summary
- Core conclusions (1 page)
- Strategic recommendation (do/don't do + rationale)

## 1. Industry Definition & Classification
[Step 1 output]

## 2. Development Stage & Trends
[Step 2 output]

## 3. Competitive Landscape
[Step 3 output]

## 4. Value Chain
[Step 4 output]

## 5. Profit Model & Profitability
[Step 5 output]

## 6. Channels
[Step 6 output]

## 7. Merchant Profile (if applicable)
[Step 7 output]

## 8. User Research
[Step 8 output]

## 9. 3A Strategic Synthesis
### 9.1 Aspiration
[Synthesized judgment based on Steps 1, 2, 8]

### 9.2 Ability
[Synthesized judgment based on Steps 3, 4, 7]

### 9.3 Accessibility
[Synthesized judgment based on Steps 5, 6]

## 10. Strategic Recommendation
- Recommendation: [Enter/Don't enter/Wait and watch]
- Rationale: [3A synthesized analysis]
- Actions: [Specific steps]
```

---

## Case Study: Robot Vacuum Industry 3A Strategy 8-Step Analysis (Summary)

### Step 1: Industry Definition
- **Definition**: Home intelligent cleaning appliances, including robot vacuums, floor washers, vacuum cleaners, etc.
- **Sub-segments**: Robot vacuums (navigation-based), handheld vacuums, floor washers

### Step 2: Development Stage
- **Assessment**: Transitioning from growth to maturity
- **Basis**: Sales growth rate decelerating (from 100%+ to 20-30%), intense price wars, increasing top-player concentration

### Step 3: Competitive Landscape
- **CR5**: Approximately 75% (Ecovacs, Roborock, Xiaomi, Dreame, Narwal)
- **Trend**: Concentration continuing to rise, small brands being cleared out

### Step 4: Value Chain
- **Upstream**: Chips, sensors, batteries (foreign-dominated)
- **Midstream**: Complete machine manufacturing (domestic brands dominate)
- **Downstream**: Online e-commerce (Tmall/JD.com/Douyin), offline KA retailers

### Step 5: Profit Model
- **Gross margin**: 35-50% (Roborock highest)
- **Net margin**: 10-20%
- **Model**: Hardware sales + consumables (dust bags, side brushes, etc.)

### Step 6: Channels
- **Online**: ~70% (Douyin growing fastest)
- **Offline**: ~30% (Suning, Gome, specialty stores)

### Step 8: User Research
- **Persona**: Age 25-40, tier-1/2 cities, mid-to-high income, families with children
- **Pain points**: Obstacle avoidance, cleaning dead zones, maintenance frequency

### 3A Strategic Synthesis
- **Aspiration**: Industry still has growth headroom (penetration <50%), but growth is decelerating
- **Ability**: Technology barriers not high, supply chain mature, but difficult for new entrants
- **Accessibility**: Gross margins acceptable, but high marketing costs put pressure on net margins

**Conclusion**: Not recommended for new entrants. Existing players should focus on differentiation (e.g., niche scenarios, premiumization)

---

## Common Mistakes

| Mistake | Manifestation | Correct Approach |
|---------|--------------|-----------------|
| Equal effort on all 8 steps | Same depth analysis for every step — time-consuming with blurred focus | Choose 5-7 steps based on strategic question; go deep on key steps, keep supporting steps brief |
| Missing 3A synthesis | Jump to conclusions after 8 steps, skipping 3A strategic synthesis | 8 Steps are input; 3A synthesis is the core output — Aspiration/Ability/Accessibility must be explicitly answered |
| Isolated steps | Each step analyzed independently without cross-validation | Steps have causal relationships: e.g., Step 3 (Competitive Landscape) should validate Step 5 (Profit Model) profit margin assessments |
| Merchant Profile overuse | Using Step 7 for every project | Step 7 is only needed for B2B businesses; skip for B2C projects |
| Mixing data and opinion | Facts and speculation not distinguished in step outputs | Every step's output must note data sources and confidence levels |

---

## China Market Specifics

| Dimension | China Characteristics | Case |
|-----------|----------------------|------|
| **Aspiration's policy weight** | China industry attractiveness is heavily policy-influenced — subsidies, licenses, access restrictions can change assessments overnight | "Double Reduction" ended the education industry overnight; NEV subsidies created a trillion-yuan track |
| **Ability's ecosystem factor** | China business competition has escalated from "company vs company" to "ecosystem vs ecosystem" | WeChat ecosystem vs Alipay ecosystem vs Douyin ecosystem three-way contest |
| **Accessibility's channel uniqueness** | China's channel landscape is unique: content e-commerce, WeChat private domain, social fission are China-specific channel forms | Douyin interest-based e-commerce GMV exceeded ¥2 trillion; Luckin's private domain reaches millions of users daily |
| **Data availability** | "Public company data is easy to find, private company data requires guessing"; industry data sources are fragmented; securities research is the most practical aggregated source | Huachuang/CITIC research reports cover 90%+ of public companies; IT Juzi/Qichacha supplement primary market data |
| **B2B merchant China specifics** | B2B decision chain: relationship-driven > product-driven; high regional fragmentation; digitization levels are polarized | Meituan B2B relies on ground sales army; SaaS companies in China struggle to replicate the US subscription model |

---

## External Research Supplement: 3A Strategy 8-Step Integration Framework

### Framework Integration Logic

The **3A Framework** (Aspiration/Ability/Accessibility) provides strategic altitude, while the **8-Step Method** provides analytical depth. Together they form a complete research system.

### Correspondence with Classic Frameworks

| 3A Dimension | 8 Steps | Classic Framework Correspondence |
|-------------|---------|--------------------------------|
| Aspiration | 1, 2, 8 | PESTEL + Industry Lifecycle + User Research |
| Ability | 3, 4, 7 | Five Forces + Value Chain + Merchant Profile |
| Accessibility | 5, 6 | TAM/SAM/SOM + Channel Analysis |

### Usage Recommendations

- **First-time use**: Follow all 8 steps in sequence
- **Once proficient**: Flexibly combine based on research scenario
- **Output-oriented**: 3A for strategic judgment; 8 Steps for analytical evidence

---
