A strategic planning tool that almost any business executive can envision. However, for managers and entrepreneurs who want to innovate their business models, the leap from traditional thinking to creative but realistic thinking can be challenging, and the next generation of sustainable profits can be developed.
By understanding the types of tools that can be used for a variety of business strategy tasks, you can get more out of your strategy development sessions while reducing the time it takes to get a good business model.
Tools for mapping and governing undisputed market space
The Strategic Canvas is the first tool introduced in the book Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. The chart depicts the location of business competitors relative to important factors in the customer market. The horizontal axis represents the competitive factor [hopefully determined by customer knowledge] and the vertical axis represents the level of supply or service level.
Use this chart to graphically depict the differences between current and potential business competitors. The main purpose of the strategic canvas is to illustrate the difference between the market and the business strategy as it relates to customer needs. By using a strategic canvas, you can create a new value innovation that breaks the conflict between low cost and differentiation – the core of the Blue Ocean strategy.
The strategy canvas is also a good tool for USP development.
2. Strategic Control Point Index
This is a tool for assessing the level of industry strategic control of a company relative to competing companies and organizations. Management consultant Adrian Slywotzky best illustrates this in "The Profit Zone" [this book I highly recommend]. The Strategic Control Point Index classifies these control points based on the level of profit protection they give to the company.
In short, it is a brief description of the path of monopoly power [or at least near monopoly] in any commercial design. The profit protection of these strategic control points ranges from “none”, “low”, “medium” to “high”. Some examples of strategic control points given by Slywotzky include:
- 10% to 20% cost advantage in the product [low]
- One year of product development leadership [slightly high, but still very low]
- Two years of product development leadership [middle]
- Brand, copyright [slightly high, but still medium]
- Customer relationship ownership [high]
- A series of super-dominant market positions [higher]
- Value chain management [even higher]
- Standard ownership [highest]
3. 6 path frame
This analytical tool is another tool from the Blue Ocean Strategy that cleverly provides strategists with a way to think about the “six traditional competition boundaries” to systematically build new assumptions and stimulate product or business design. breakthrough. The idea is that one of these unconventional ways of looking at the competitive landscape may break a strategic breakthrough.
One] View various industries – Compete with alternatives and alternatives to your products/services, not what you think is your competitor.
b] View strategy group – Understand how your new strategy evolves between the strategic boundaries of natural assumptions in the industry.
C] Look at the entire buyer chain – Consider how to change the game by changing the definition of "primary buyer".
d] View supplements and services – Consider the usual solution for the entire system of customers [your current product may be only a small part].
E] View features or emotional appeals – Check how to create a new value curve by adding emotion to a function-oriented industry, or removing emotions and reducing products or services to the core of their function.
F] Watch time – Adjust your time frame to a different point or period than the other industries in your industry.
4. Commercial design matrix
The Business Design Matrix is a great analysis tool that you can use to understand and analyze your competitor's business model at a glance. It is mainly from the work of Dr. Adrian Slywotzky. The criteria for analyzing your competitors and your own organization include:
- Customer choice
- Profit extraction system
- Differentiation / strategic control
- Scope of supply and existence
These four core considerations lay the foundation for determining marketing strategies – a foundation for a larger business strategy that can be easily rested.Ultimate Cleaning Business Package, Click here!