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What Is The Four Actions Framework And Why It Matters In Business
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.
The Four Actions Framework can be employed to alter the product in a given market. Kim and Mauborgne, authors of Blue Ocean Strategy advocate the Blue Ocean Strategy, the framework can also be used to refine existing products.
In pursuit of these goals, there are four points that all businesses must consider:
Can any existing product attributes (competitive factors) be enhanced in such a way that they provide extra consumer value? In other words, which attributes can set new industry standards or trends?
Conversely, are there any such elements that can be reduced or eliminated if their relative value or cost does not justify the means? Perhaps some factors erode profits or reduce competitive advantage?
This means removing factors that customers pay for as part of a status quo that industry players take advantage of. In the wine industry, the aging qualities of wine and the complex terms used to describe wine are promoted to add value to the finished product. But what do these somewhat pretentious and superfluous terms mean to the average consumer? Better value-adding, competitive factors may include wine club discounts or guided tours of the winemaking process.
Is there an opportunity to bring something novel to the market that solves a consumer problem in a more effective way than a competitor offering? Instead of creating complex wines with complicated descriptions, a winery could produce a wine that was fun, unpretentious, and easy to drink at an attractive price point.
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