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January 18, 2024, vizologi

Acting on the Strategy Canvas

Using the strategy canvas can change the game for businesses aiming to compete better. This tool, developed by W. Chan Kim and Renée Mauborgne, helps organizations map out their strategies visually and compare them with competitors. Businesses can make informed decisions on adding value and cutting costs by analyzing this data. This method has been shown to drive innovation and change industry dynamics.

In this article, we’ll examine the benefits of using the strategy canvas and how it drives business success.

Understanding the Game Plan Map

Big Ocean and Little Pond Thinking

“Big Ocean and Little Pond Thinking” significantly impacts an individual’s approach to competition and strategy. Those with a “Big Ocean” perspective aim to expand into new, uncontested market spaces, while those with a “Little Pond” perspective focus on competing within existing markets.

Their mindset and decision-making differ. “Big Ocean” thinkers prioritize innovation and value creation, whereas “Little Pond” thinkers prioritize competition and benchmarking against existing rivals.

Recognizing and adapting to the dynamics of “Big Ocean and Little Pond Thinking” can greatly benefit a person or organization’s competitive efforts. By embracing a “Big Ocean” mindset, individuals and organizations can uncover growth opportunities, reduce competition, and create demand for their offerings.

Conversely, by recognizing a “Little Pond” mindset, they can refine existing strategies, differentiate themselves from competitors, and gain a deeper understanding of customer needs and preferences.

Therefore, understanding these perspectives is essential for optimizing competitive strategies in today’s dynamic business environment.

What’s the Strategy Canvas For?

The Strategy Canvas is a helpful tool that lets organizations visualize their strategic position and spot new opportunities in the market. It gives a clear view of where they and their competitors are investing, what factors are important in their industry, and what customers get from existing offerings.

This tool also helps understand competition and market position by showing how an organization’s offering compares to its competitors. Organizations can develop game-changing strategies by mapping value curves, comparing investments, and defining key competition factors. It allows the evaluation of high-level business strategies and individual product strategies, offering valuable insights and aiding the development of new value propositions.

Companies like [yellow tail] and Southwest Airlines have successfully used the Strategy Canvas for strategic decision-making and market expansion, showcasing its effectiveness.

Getting Ready for Your Game Plan

Who You’re Up Against in the Game

When developing a strategy with the Strategy Canvas Action framework, it’s important to know your competition. Businesses can identify their strengths and weaknesses by mapping out key players and competitors. This helps shape their game plan strategy.

The strengths and weaknesses of rivals impact an organization’s strategic decision-making process. This knowledge allows businesses to capitalize on areas where their competitors are weak and adjust their offerings to stand out in the market.

Understanding the competition helps companies identify opportunities for differentiation. By evaluating competitors, businesses can enhance their value proposition and gain an edge in the industry.

The information and insights gained from the competition assessment can significantly impact the trajectory of the organization’s strategic approach.

Key Moves in the Competition

Companies can use the strategy canvas as a tool to identify competitors’ key moves in the industry.

They can compare product, service, and delivery factors with those of competitors to gain insights into where competitors are investing.

Companies can identify competitors’ key moves by evaluating competition factors and strategic profiles. This helps them understand what buyers are receiving from existing competitive offerings.

The strategy canvas also allows organizations to innovate and create game-changing actions in response to the competition.

For example, using the four actions framework to raise, reduce, create, and eliminate factors on the canvas can help companies strengthen their value proposition and outcompete others in the market.

Real-world examples of companies like [yellow tail] and Southwest Airlines demonstrate how these frameworks can be used to respond to competition and drive innovation in the industry.

Spotting Your Rivals’ Game Tactics

Companies can use the strategy canvas technique to compare their strategies and costs with those of their competitors. This helps them understand where they and their competitors are investing and what customers receive from competitive offerings.

They can also study real-world examples to see how others have used this technique and complementary frameworks.

By evaluating communication strategies, customer service resources, image-building platforms, and pricing portfolios of rivals, companies can identify opportunities to improve their product offerings and customer experiences, giving them a competitive edge.

Drawing Your Game Moves

One way to enhance the game plan is by visualizing the organization’s and its competitors’ value curves.

Mapping out these value curves on a strategy canvas can help identify areas for innovation and deliver unique value to customers.

This can lead to game-changing actions and tactics by highlighting where competitors are heavily investing and the factors of competition in the industry.

It allows organizations to break away from the competition and create a blue ocean strategy.

Drawing game moves provides a clear visual representation of the industry and the organization’s current strategic profile, contributing to smarter play and inventing new strategies.

This can lead to insights on differentiating offerings, reducing unnecessary competition factors, and addressing elements not effectively dealt with by competitors, ultimately creating new value for customers.

Pick Your Game-Changing Actions

Organizations can use the Strategy Canvas to come up with new ideas. They can see where they currently invest and find new areas to grow or make new products. To be more successful, they can focus on improving their offerings, supporting where there’s not much competition, and seeing where money is spent in the value chain.

When old strategies don’t work well, companies should look at their competition to find weak strategies. They should then get rid of these and replace them with new actions that line up with their goals. The Strategy Canvas helps organizations make excellent and long-lasting strategies, evaluate their competition, and create a great value proposition in the market.

Play to Win: Raise the Bar

The Strategy Canvas is important for “Play to Win: Raise the Bar”. It is a central tool for building a compelling blue ocean strategy. This tool captures the current strategic landscape and future prospects graphically. It shows how an organization configures its offerings compared to competitors.

By using the Strategy Canvas, individuals can identify game-changing actions. They can evaluate competitors, define competing factors, score players, and use the Four Actions Framework. This approach helps strengthen the value proposition and outcompete others by raising, reducing, creating, and eliminating factors on the canvas.

Real-life examples of companies successfully applying “Play to Win: Raise the Bar” include [yellow tail] and Southwest Airlines. They used the Strategy Canvas to evaluate high-level business and product strategies. This has helped them expand into new markets and gain a competitive advantage.

Find Ways to Play Smarter, Not Harder

Businesses and individuals can use the Strategy Canvas to visualize their current strategies and find growth opportunities. Comparing offerings to competitors can reveal untapped market spaces, called Blue Oceans, where new strategies can be developed. The Four Actions Framework helps invent new tactics to gain a competitive edge by adjusting factors on the canvas. Dropping losing strategies and pivoting based on buyer preferences and industry competition factors is crucial.

These tools provide valuable insights for playing more intelligently, not more challengingly.

Invent New Moves in the Game

You can use the strategy canvas action framework to come up with innovative new moves for the game. This helps analyze the current strategic situation and future opportunities for the organization. It involves looking at competition factors, what buyers get from them, and understanding the organization’s and competitors’ cost structures.

Using the Strategy Canvas creates a clear visual that shows where the organization and its competitors are investing, revealing gaps and areas for innovation.

Before putting these new moves into the game, it’s a good idea to test and refine them. This can be done by doing market research, gathering customer feedback, and pilot testing. Organizations can improve their new moves and value propositions by evaluating high-level business strategies and individual product strategies. The Four Actions Framework can also strengthen new moves by raising, reducing, creating, and eliminating factors on the canvas. Real-world examples of successful use of these frameworks demonstrate their effectiveness.

When to Drop a Losing Strategy

A strategy might not be working if sales are decreasing, customer complaints are increasing, market share is declining, and keeping up with competitors becomes difficult.

Before dropping a failing strategy, leaders should consider the potential cost savings, reallocating resources to new initiatives, and the long-term benefits to overall goals and profits.

To pivot effectively, organizations should analyze why the strategy is failing, identify new competencies, and align internal structures to support the new direction. This helps create an environment for agility and improvement without disrupting daily operations too much.

Your Game Plan in Action: Real Stories

The [yellow tail] Way of Changing the Game

yellow tail website

Understanding the strategy canvas in “The [yellow tail] Way of Changing the Game” is important. It helps visually comprehend an organization’s competitive landscape and identify potential areas for growth.

Companies can use the strategy canvas to evaluate their strategic positioning and align their offerings with unmet market demands. This creates new value curves and differentiates their products from competitors.

By using this method, [yellow tail] effectively spots and responds to rival game tactics. They map the key competition factors, rank competitors’ investments, and develop a unique value proposition to outcompete others.

Real-life examples of this approach in action include companies like [yellow tail] and Southwest Airlines. They have successfully utilized the strategy canvas and the four actions framework to identify new market spaces, strengthen their value propositions, and gain a competitive edge in the industry.

How Southwest Airlines Flew to the Top

Southwest Airlines became successful by making strategic moves. They focused on well-timed route selections, live television services on their flights, and limited ticket sales through third-party outlets. Southwest Airlines gained a competitive edge by using clever tactics like being the first airline to use secondary airports, offering 15-minute gate turnarounds, and maintaining an all-Boeing 737 fleet.

The airline played smarter, not harder, by implementing innovative strategies, including pricing transparency, a low-cost point-to-point flying route strategy, and a high-frequency cut-rate strategy. These strategies helped Southwest Airlines rise to the top in the airline industry.

Vizologi is a revolutionary AI-generated business strategy tool that offers its users access to advanced features to create and refine start-up ideas quickly.
It generates limitless business ideas, gains insights on markets and competitors, and automates business plan creation.

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+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.

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