Chapter 2:Analytical Tools and Framework

Team 6 Garrett

JohnathanAlex

Allison

Strategy Canvas

• Compares core competencies for competition

Strategy Canvas in Blue Ocean

• Focus on:– Move focus from competitors to alternatives– Move focus from customers to noncustomers

• Don’t Focus on:– Offer more for less– Choose between differentiation and cost

leadership

The Four Actions Framework

The Four Actions Framework

• Eliminate- the first question ask you to look at your competition and how you can eliminate factors that you have long competed on

• Reduce- this factor forces you to look at overdesign of product and over serving customers

• Raise- here you must eliminate compromise• Create- discover new sources and create new

demand

[yellow tail]’s Framework

Eliminate– Wordy terminology /

distinctions– Aging quantities– Above-the-line marketing

Reduce– Wine complexity– Wine range– Vineyard prestige

[yellow tails]’s Framework

Raise– Price versus budget wines– Retail store involvement

Create– Easy drinking– Ease of selection– Fun and adventure

Subway’s Framework

• Eliminate– Unhealthy atmosphere

• Raise– Food standards

• Reduce— Sugary drinks, fatty

sandwiches

• Create— Fresh fit combo meal

Three Characteristics of a Good Strategy [yellow tail]

• Focus– Easy Drinking, Ease of Selection, Fun/Adventure

• Divergence– Set themselves apart as a new, laid back wine

• Compelling Tagline– “Go-To”– Conveyed as America’s go to wine– No knowledge of classified wine necessary

Three Characteristics of a Good Strategy

• Focus• Divergence• Compelling Tagline

• These serve as an initial litmus test of the commercial viability of blue ocean ideas

FOCUS

• Identify key factors of competition– EX: Southwest Airlines• Quality, Speed, Price, Innovation…

• Choose on factor

• Focus on that one factor

DIVERGENCE

• Break out of the common competing Techniques

• Price wars, meals, seating

• Revolutionize the industry• Point-to-point travel between midsize cities

– Previously: hub-and-spoke systems

• Make changes to the way things done in the industry

• EX: Southwest Airlines

COMPELLING TAGLINE• “The speed of a plane at the price of a car-whenever you need

it.”

• What is a tagline?• A short descriptive phrase

• Tagline should be:– Short and Clear– Truthful– Updated

• EX: yellowtail• A fun and simple wine to be enjoyed every day

The Strategy Canvas

Reading the Value Curves

• 1st question value curves answer is does the company deserve to be a winner?

• Does it meet the three criteria: focus, divergence, and compelling tagline

• A business does not want it’s value curve to converge with that of its competitors

• Does your company’s value curve show high levels across all factors?

Reading the Value Curves

• Incoherent strategy: company does not have one main goal, but has many independent sub strategies

• Are there strategic contradictions?• Is your company internally driven? Inside-out

strategy or outside-in strategy?

Key Points

• Diagnostic and Action Framework for building a compelling strategy

• Create unique identity and value• Use the Four Actions Framework to create a new value

curve• Focus on one key competitive factor and differentiate

yourself from your industry• Using the value curve can help reveal strategic

information that can aid a company in gaining market share and becoming a powerhouse in their industry