1. Chapter 2: Analytical Tools and Framework
Team 6
Garrett
Johnathan
Alex
Allison
Chapter 2: Analytical Tools and Framework

2. Strategy Canvas Compares core competencies for competition
Both a diagnostic and an action framework for building a compelling blue ocean strategy. It serves two purposes: 1. captures the current state of play in the known market space which allows you to understand where the competition is currently investing. 2. Offering level that buyers recevie across all these key competing factors.

3. 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
To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry. This will help you gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries.

4. The Four Actions Framework

5. 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

6. [yellow tail]’s Framework
Eliminate
Reduce
Wordy terminology / distinctions
Aging quantities
Above-the-line marketing
Wine complexity
Wine range
Vineyard prestige

7. [yellow tails]’s Framework
Raise
Create
Price versus budget wines
Retail store involvement
Easy drinking
Ease of selection
Fun and adventure

8. Subway’s Framework Eliminate Raise Reduce Create Unhealthy atmosphere
Food standards
Reduce
Sugary drinks, fatty sandwiches
Create
Fresh fit combo meal

9. 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

10. 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

11. FOCUS Identify key factors of competition Choose on factor
EX: Southwest Airlines
Quality, Speed, Price, Innovation…
Choose on factor
Focus on that one factor

12. 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

13. COMPELLING TAGLINE What is a tagline? Tagline should be:
“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

14. The Strategy Canvas

15. 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?

16. 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?

17. 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