How can you use the Four Actions Framework to create a unique value proposition?

1 What is the Four Actions Framework?

The Four Actions Framework, developed by W. Chan Kim and Renee Mauborgne, authors of the best-selling book Blue Ocean Strategy, is based on the concept of simultaneously pursuing differentiation and low cost to create a new market space. To analyze your product and industry, four questions should be asked: What can you eliminate that the industry takes for granted? What can you reduce well below the industry standard? What can you raise well above the industry standard? And what can you create that the industry has never offered? Answering these questions enables you to identify essential, irrelevant, or underexplored factors in your product category and develop a new value curve that stands apart from the competition.

2 How to apply the Four Actions Framework?

To apply the Four Actions Framework, you need to have a clear understanding of your current product, your target customers, and your competitors. You can use tools such as customer interviews, surveys, market research, and competitor analysis to gather relevant data and insights. Then, you can use a matrix or a canvas to map out the answers to the four questions, and generate ideas for improving or transforming your product. For example, you can use the following template:

| Eliminate | Reduce | Raise | Create |

|-----------|--------|-------|--------|

| What can you remove from your product that is no longer valuable or necessary for your customers? | What can you lower in your product that is not very important or satisfying for your customers? | What can you increase in your product that is highly important or satisfying for your customers? | What can you add to your product that is new and valuable for your customers? |

You can also use a graphical representation of your value curve, such as the one below, to compare your product with your competitors and visualize the gaps and opportunities:

[Insert a diagram of a value curve with different factors on the horizontal axis and the level of offering on the vertical axis]

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?