Table of Contents
There are 4 relatively simple steps to preparing your own Strategy Canvas. Identify the competition. The first step to drawing a Strategy Canvas is to know who your competition is. Identify the factors of competition. Evaluate the competition. Chart your competitive differentiation.
What is the strategy canvas?
A Strategy Canvas is a tool that compares the product factors that a sample of incumbent products compete on, based on the value that a particular customer segment receives from them, in a two-dimensional chart.
What is strategy canvas template?
A strategy canvas is a line graph that plots functions/factors against the value of a company and then overlays industry benchmarks. Additionally, strategy canvas allows your organization to see in one picture all the factors an industry competes and invests in.
How do you make a blue ocean strategy canvas?
5 Proven Steps to Creating Your Own Blue Ocean Strategy Step 1: Create A Strategy Canvas. A strategy canvas is the most fundamental tool used in the Blue Ocean Strategy framework. Step 2: Raise An Attribute. Step 3: Reduce An Attribute. Step 4: Eliminate An Attribute. Step 5: Create An Attribute.
What is the value curve of the strategy canvas?
The value curve – the basic component of a strategy canvas – is a graphical representation of the strategic profile of a company or industry segment reflecting its relative performance across the industry’s factors of competition.
What are the two key benefits of a strategy canvas?
The strategy canvas serves two purposes: It captures the current state of play in the known market space, which allows users to clearly see the factors that an industry competes on and invests in, what buyers receive, and what the strategic profiles of the major players are.
How does strategy canvas help create new demand?
Its purpose is to find market niches where the competition is irrelevant. This allows firms to reconstruct market boundaries and create and capture new demand that the competition isn’t targeting. This also helps avoid price wars and shrinking profits.
What is strategic group mapping with examples?
Strategic group mapping is a technique for displaying the different competitive positions that rival firms occupy in the industry. Helps in identifying strategic areas with the help of which benefits can be easily gained, Helps in identifying best firms in the industry, Helps in rectifying major rivals.
What is the four actions framework?
The four action framework points out four key actions to take into account to refine existing products. Those are: raise, reduce, eliminate, and create. To plot the available consumer products in a marketplace against the company’s ability to provide value and thus be competitive over time.
What is blue ocean grid?
The Blue Ocean Leadership Grid is an analytic tool that complements the Leadership Canvas and helps you formulate your blue ocean leadership profile that can unlock the ocean of unrealized talent and energy in your organization.
What is the sequence of blue ocean strategy?
Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating.
Is Netflix a blue ocean strategy?
Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.
What is red ocean strategy?
Red Ocean vs. Blue Ocean Strategy Red Ocean Strategy Blue Ocean Strategy Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost. Align the whole system of a firm’s activities in pursuit of differentiation and low cost.
What is creation of value?
Value creation happens when a business or organization uses its work and resources to create something of value that is sold to a customer base. In turn, the business earns a profit for what it has created and the customers have a want or need fulfilled.
How do you create a value curve?
Use the following steps to apply the model: Identify the main competitive factors in your industry. Write these along the horizontal axis of your graph. Determine how you and your competitors score for these factors. Now review your market position against that of your competitors.
What is the name of the curves on the strategy canvas tool?
The line graph that you get after plotting out the competing factors and offering level is called the value curve or strategic profile.
What is a blue ocean canvas?
The Blue Ocean Strategy Canvas is a model with which you can compare products or companies. On the horizontal axis, you place the most important parameters for the specific product or company that you want to analyze. On the vertical, you indicate whether this value is high or low at the company you are investigating.
What is a blue ocean strategy provide some examples?
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
What is strategy mapping in the balanced scorecard?
Strategy mapping is a tool created by Balanced Scorecard (BSC) pioneers Robert S Kaplan and David P Norton. It allows organisations to describe and communicate their strategies. Strategy maps can be used as a standalone tool to depict an organisation’s strategy.
How do you create a strategic group?
How to Create a Strategic Group Map Identify the top rivals in your industry; try to identify at least five of them. Then identify the factors that have helped you succeed. Next, select the top two factors that drive success for your business.
What are the major steps in constructing a strategic group map?
There are four steps to construct a strategic group map: (i) identify the competitive variables that distinguish companies; (ii) plot firms on a two-variable map with pairs of characteristics; (iii) assign companies to the strategic groups; (iv) draw circles around each strategic group.
What is a blue ocean strategy tool?
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.
What is a value curve?
A Value Curve is a diagram which can be used to show instantly where value is created within an organisation’s products or services, showing graphically how a company can create new market spaces and provide value to customers against competition.
