How do you use the four actions framework to innovate your value proposition?

The Four Actions Framework is a significant tool for innovating and value creation, as it helps firms identify fresh growth opportunities in their market. Let's consider Netflix as an example. Using this framework, Netflix 'eliminated' the inconveniences of physical stores and late fees, which were prevalent in the traditional DVD rental business. They 'reduced' the complexity of choosing movies by providing a recommendation system. They 'raised' convenience and accessibility by delivering DVDs through the mail and later, streaming content directly to consumers' devices. Finally, they 'created' a personalized, on-demand viewing experience, introducing a new market space.

For example, an airline can rethink its strategy using the four-actions framework. What factors can it eliminate that are taken for granted by the airline industry, such as traditional boarding procedures or physical ticketing and check-in? What factors can it reduce, such as fancy amenity kits or splurge marketing spending? What factors can it raise well above the industry standard, such as on-time performance or customer service? And what factors can it create that the industry rarely offers, such as personal concierge service for loyal frequent flyers or a loyalty program with exclusive experiences? An airline can lower its costs, increase its value, and differentiate itself from its competitors through these.

The Four Actions Framework's 'Elimination' aspect removes industry norms that lack value. Consider Southwest Airlines: Traditional airlines offered tiered seating, in-flight meals, and complex pricing. Southwest, however, scrapped these. They focused on no-frills, low-cost, point-to-point service, thus cutting costs, simplifying operations, and opening up affordable air travel to more customers.

The elimination factor is sinergic to the running trends of the moment. It is risky, but can be very rewarding if the trend consolidate, on the other hand, it can be disastrous if the trend turn into a temporary Bubble ....

Reduction in the Four Actions Framework involves decreasing factors below the industry's standard to streamline operations or costs. IKEA, for instance, 'reduced' services traditionally associated with furniture retail, such as home delivery and assembly. Instead, they offered flat-packed, self-assembled furniture, lowering costs and making transportation easier for customers. This reduction played a significant role in IKEA's unique, cost-efficient business model, making quality design furniture accessible to a broader audience.

The reduction factor have demonstrated to work when the pioneers of the specific sector generate competitive volumes which forced other players in the industry to align Their offers. Being the white sheep does not always create loyalty... Humans are a very predictive species and most of the time they turn back to their usual habits.

Elevation is the right answer !!!!! Reinventing, Recreating, Revaluing. Many very successful corporations have embraced these policies.

Apple's launch of the iPhone exemplifies this concept. Prior to the iPhone, mobile phones were largely for calling and texting, with limited internet capabilities. Apple 'created' a device that not only combined a mobile phone and an iPod, but also introduced a full-featured web browser, creating the first real smartphone. This revolutionary device significantly altered the telecommunications and technology industries, demonstrating the power of 'creation' in the Four Actions Framework.