Analytical Tools and Frameworks
Group 6:
Wayni Hebert,
Sterling Rose,
Justin Simpson,
Gwen Singleton,
Krista Wells
The Strategy Canvas
Diagnostic and Action Framework for building a compelling blue ocean strategy.
It compares core
competencies for
competition and their
level of importance
for each player in the
market.
How to use it in BOS?
 Don’t:
Offer a little more for a little less
 Do:
Reorient strategic focus from competitors
to alternatives and from customers to
noncustomers of the industry.
The Four Actions Framework
 To create a new value curve
 To break the trade-off between
differentiation and low cost
The Four Actions Framework
2. Reduce
Which factors should be
reduced well below the
industry standard?
1. Eliminate
Which factors that the
industry takes for
granted should be
eliminated?
A New Value
Curve
3. Raise
Which factors should be
raised well above the
industry standard?
4. Create
Which factors should be
created that the
industry has not seen
before?
Figure 2-2
The Four Actions Framework
Eliminate (competition)
1.


Factors your industry competes on
Change in what buyers value
Reduce (competition)
2.


Overdesigned products
Over served customers
Raise (customers)
3.

Eliminate compromises
4. Create (customers)

New sources of value

New demand
McDonald’s Framework
 Create New Sources of Value:
 Brand
 customer care
 cost structure
 its patent
 target audience
Sustainable – the key test of a core competency measures the ability
of a firm to continually increase the advantage of the competency
over many years.

“The world has changed. Our customers have
changed. We have to change too."
- James R. Cantaloupe, Chairman and CEO, McDonald's, 2003
*http://ezinearticles.com/?McDonalds-Business-Analysis&id=687438
Eliminate-Reduce-Raise-Create Grid
Figure 2-5: The Case of McDonald’s
Eliminate
Raise
Super Size Option
•Health Standards
Reduce
Create
•Calories in burgers
Salad Menu
Characteristics of a Good Strategy
 Focus
 Divergence
 Compelling Tagline
FOCUS
 Identify key factors of competition
 EX. Quality, speed, price, inovation…..
 Choose one factor
 Focus on that one factor
Divergence
• Break out of the common competing Techniques
 Ex. Price war,
• Revolutionize the industry
 Ex. McDonalds and Starbucks used brand divergence
• Make changes to the way things done in the
industry.
 Ex. Southwest Airline
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. “I'm lovin' it” replacing "We love to see you smile."
Reading the Value Curves
 A Blue Ocean Strategy
 A Company Caught in the Red Ocean
 Over delivery Without Payback
 An Incoherent Strategy
 Strategic Contradictions
 An Internally Driven Company
The Strategy Canvas
Key Points
1.
2.
3.
4.
5.
Diagnostic and Action Framework for building a
compelling blue ocean strategy.
Create your own identity and value.
Act on the Four Actions Framework to create a new
value curve.
Focus on one key competitive factor and use
divergence to differentiate yourself from the
industry.
Understanding the value curve can reveal strategic
information that can help a company gain market
share and become a winner in their industry.