Team 6
Garrett
Johnathan
Alex
Allison
Chapter 2:
Analytical Tools and Framework
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
• Reduce
— Sugary drinks, fatty
sandwiches
• Raise
– Food standards
• 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