The Four Actions Framework for Blue Ocean Strategy

Blue Ocean Strategy
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The Four Actions Framework for Blue Ocean Strategy

The 4 action framework is a key tool in the Blue Ocean Strategy process made up of the four strategic moves
- Eliminate
- Reduce
- Raise
- Create
This tool helps create new buyer value elements thus breaking the tradeoff between differentiation and low cost. Once the four actions have been decided, a future Blue Ocean Strategy value curve can be created.



Superb Example of Using the 4 Actions Framework

In the interesting blog of Kim & Mauborgne, I discovered we can actually use the 4 Actions Framework to deepen our thinking about our post-Covid strategy...
Consider these 4 questions:
- Which 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?
- Which factors that the industry has never offered should be CREATED?

The first two questions (actions) prompt managers to find ways to drop their cost structure:
- The "Eliminate" question forces them to consider disregarding factors that the industry has long believed central to competition. Even though these factors no longer add value, or even decrease it, they are rarely questioned because of long-held industry practice. Because these factors buttress an organisation's cost structure for little to no gain, substantial cost savings can be made by eliminating them.
- The "Reduce" question pushes managers to determine whether products or services have been overdesigned in the race to match and beat the competition. Here, organisations over-serve customers, increasing their cost structure for no gain. By reducing these factors, costs can be further decreased.

The third and fourth questions drive managers to increase buyer value:
- The "Raise" question inspires them to eradicate the compromises customers are forced to make, which are usually caused by an industry's failure to see that consumers want more of some elements than the standard offering provides.
- The "Create" question challenges managers to offer entirely new kinds of value for buyers and to create new demand by converting non-customers into customers.

Reference: The W. Chan Kim & Renée Mauborgne Blog


More on Blue Ocean Strategy:
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Visionary Leadership and Blue Ocean Strategy
Purple Ocean Strategy
Blue, Green or Even Violet Ocean Strategies
Strategic Sequence: Best Practices and Pitfalls
Blue Ocean Strategy Disadvantages
A BOS is Creating a New Mental Category
What is a Pioneer-Migrator-Settler Map (PMS Map)?
Why is it Called 'Blue' Ocean Strategy?
BOS = Niche Market Strategy
Differences in BOS / ROS Cultures
Blue Ocean Strategy in Small Companies
How to Avoid Imitation of Blue Ocean Strategy?
Can a Blue Ocean Eventually Turn Into a Red Ocean?
Six Paths to Moving from Red to Blue Ocean
BOS is More of the Same
Execution Hurdles in Blue Ocean Strategy
👀The Four Actions Framework for Blue Ocean Strategy
Porter Model vs Blue Ocean Strategy
Filtering Blue Ocean Ideas: Strategic Overlays
Blue Ocean Strategy - Three Tiers of Noncustomers
Blue Ocean Strategy of Google
BOS and ROS are Both Supplier Centric
How to Start with Blue Ocean Strategy?
Blue Ocean Strategy - Apple
Blue Ocean Strategy - Buyer Experience Cycle
Blue Ocean Strategy: Buyer Utility Levers
BOS / ROS Isn't a Strategy
First Mover Advantage / Price Maker in BOS
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Blue Ocean Strategy for UPS
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BOS in Less Developed Countries
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Blue Ocean Strategic Sequencing for Delta Airlines
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