Blue Ocean Analytical Tools

Following are three analytical tools used in the formulation of a Blue Ocean Strategy. The three tools we will look at are:

  • Strategy Canvas
  • Four Actions Framework
  • Eliminate-Reduce-Raise-Create Grid

The Strategy Canvas

The Strategy Canvas is both a diagnostic tool and an action framework. From a diagnostic point of view, it is used to capture what is happening in the existing market space. The following example from the book describes the US wine market prior to Casella Wines introduction of Yellow Tail.

stratcan

This paints a picture of where the competition is currently investing and the factors they compete on in products, services, delivery and what customers receive from the existing offerings.

Four Actions Framework

The Four Actions Framework asks four key questions to challenge an industry’s preexisting norms.

faf

The eliminate and reduce questions lead you to gaining an insight into how to drop your cost structure while the create and raise questions lead you to gaining an understanding into how to increase customer value and generate new customer demand.

Eliminate-Reduce-Raise-Create Grid

The third tool supplements the second encouraging action. The example below shows how Casella Wines answered those four key questions.

e-r-c-r-grid

This resulted in a strategy canvas that looked like the following for Casella Wines’ new Yellow Tail brand in the US wine market.

stratcan-yt

You can see from the above picture, Yellow Tails curve has three very important characteristics.

  1. Focus: efforts were not diffused across all key factors of the competition
  2. Divergent: the value curve diverges from the competition
  3. Compelling Tagline: ‘a fun and simple wine to be enjoyed every day’

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Beyond Philosophy | CX Consultants | Customer Experience

Customer Experience, Design Thinking, Innovation, Strategy and Leadership

I J Golding

Just another WordPress.com site

Virgin - Richard

Customer Experience, Design Thinking, Innovation, Strategy and Leadership

Successful Outcomes

Customer Experience, Design Thinking, Innovation, Strategy and Leadership

The Customer & Leadership Blog

provocative conversations: questioning conventional wisdom / stimulating original thinking

Seth Godin's Blog on marketing, tribes and respect

Customer Experience, Design Thinking, Innovation, Strategy and Leadership

%d bloggers like this: