It’s a different way of thinking that challenges the assumptions you and everyone else is making about the industry and the customers. The four actions framework is an accompanying tool to the strategy canvas. One way to achieve this is by applying the four actions framework. “By questioning conventional definitions of who can and should be the target buyer, companies can often see fundamentally new ways to unlock value.” -W. Instead of coming up with “clever” ways to get customers to buy from you, shift your thinking to whether or not you are actually adding exceptional value to your customers. Instead of competing for the same pie that just keeps getting smaller, why not make your own pie? This visual graphic is a powerful tool in persuading leaders and other executives to stop their status quo thinking. And that’s the second way you can use the strategy canvas-plot your future state. Meaning, your strategies are similar to everyone else.īut that means you can no longer deny that you need to change your strategy if you want to succeed and become more profitable. If you are objective, you will find that you will fall on either the high-end or lower-end of the spectrum. Blue Ocean StrategyĪfter plotting out the industry’s value curve, you then layer in your own. Think of the Walmarts and Amazons-they can command a low price in their offerings and still gain a profit because of economies of scale.Īnd as brands become more similar, people increasingly base purchase choices on price. But unless you have a low-cost infrastructure in place, you won’t be able to compete as well as other brands. This pushes everyone in the industry to compete solely on price. In most cases, businesses rely on one tactic-promos or discounts. You’ll see that there are premium wines and budget wines. Take a look at the strategy canvas for the wine industry. The only difference is the offering level. Oftentimes, when you try plotting out the industry’s strategy canvas, you’ll see two profiles that emerge-high-end and low-end players. This is the first step you should not skip. Drive action to change and create a to-be strategy canvasīy capturing how you and your industry competes, you get to visualize how similar your approach is to one another.Capture the current state of play in your industry -this is called the as-is strategy canvas.You can use the strategy canvas in two ways: Instead of competing with each other, normally in form of price wars, you can look elsewhere to find more lucrative opportunities. If you and the major industry players all have the same strategies, this is a great opportunity to stand out. Lastly, creating your current or as-is strategy canvas provides a baseline for change. If the employees who are closest to customers and who operate processes that create value are unaware of the strategy, they surely cannot help the organization implement it effectively. According to a research by the Harvard Business Review, 95% of a company’s employees are unaware of, or do not understand, its strategy. The strategy canvas also helps business leaders communicate its strategy to its employees and other key stakeholders. By visually plotting the strategies of the industry and your own, it makes it easier to understand your own strategy. And if you add your own strategic profile, you can see if it is similar to your competitors or not. There are many benefits from using the strategy canvas.įirst, the strategy canvas helps you understand the strategy of the industry players.
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