Competitive strategy frameworks can help you comprehend the factors that shape your industry, the sources of competitive advantage, and the strategic options available to you. When selecting a framework, you should consider the level of analysis you want to focus on (macro or micro), the type of industry (homogeneous or heterogeneous, stable or dynamic, global or local), the type of competition (price or differentiation, direct or indirect, existing or potential), and the type of value proposition (how do you create value for customers and how do you communicate it?). Popular competitive strategy frameworks include Porter's five forces, Porter's generic strategies, resource-based view, and blue ocean strategy. Porter's five forces analyze the industry structure and intensity of competition based on five forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and rivalry among existing competitors. Porter's generic strategies suggest three ways to achieve a competitive advantage: cost leadership, differentiation, or focus. The resource-based view argues that the key to a competitive advantage is not industry structure but resources and capabilities possessed and exploited by a firm. Blue ocean strategy proposes creating new markets where there is no competition rather than competing in existing ones.