The Four Actions Framework helps companies create a Blue Ocean from "summary" of Blue Ocean Strategy, Expanded Edition by W. Chan Kim,Renée A. Mauborgne
The Four Actions Framework is a powerful tool that enables companies to break out of the competitive red ocean of bloody competition and create a blue ocean of uncontested market space. This framework challenges companies to simultaneously reduce costs, increase value to customers, and create new market space. By focusing on four key questions - which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industry's standard? Which factors should be raised well above the industry's standard? And which factors should be created that the industry has never offered - companies can unlock new opportunities for growth and innovation.
The first question, which factors should be eliminated, prompts companies to identify and eliminate the unnecessary costs and features that do not add value to customers. By stripping away these extraneous factors, companies can streamline their operations and offer a more cost-effective solution to customers. The second question, which factors should be reduced well below the industry's standard, challenges companies to identify areas where they can cut back without sacrificing value to customers. This allows companies to lower costs while maintaining a competitive edge.
The third question, which factors should be raised well above the industry's standard, pushes companies to identify areas where they can exceed customer expectations and create new value. By focusing on these key factors, companies can differentiate themselves from the competition and attract new customers. The fourth question, which factors should be created that the industry has never offered, encourages companies to think outside the box and innovate in ways that disrupt the industry.
By answering these four questions and implementing the necessary changes, companies can create a blue ocean of uncontested market space where they can thrive and grow. The Four Actions Framework provides a systematic approach to innovation and value creation that can help companies break free from the constraints of traditional competition and chart a new course for success. By challenging assumptions, redefining industry standards, and focusing on creating new value for customers, companies can unlock new opportunities for growth and profitability.
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