Toolkit Strategy 3 min read

Translated from the Vietnamese original

It helps a company restructure value by re-examining the factors an industry competes on, so it can use resources better and stand apart.

Four core questions

The framework is built on four core questions that help a company reshape its strategy:

1. EliminateIdentify which factors the industry takes for granted that are outdated and add no real value for customers, yet still consume cost and resources.
2. ReduceIdentify which factors receive too much focus, or more investment than the value they actually deliver.
3. RaiseWhich factors can the company raise above the industry standard to meet customers’ higher expectations?
4. CreateWhich entirely new factors can be created to open up new market space?

Lower costEliminateEliminateWhich factors the industry takes for granted are outdated, add no real value for customers, yet still cost money?

Raise valueRaiseRaiseWhich factors can be raised well above the industry standard?

Lower costReduceReduceWhich factors get more investment than the value they deliver?

Raise valueCreateCreateWhich entirely new factors could open up new market space?

Eliminating and reducing lower cost; raising and creating lift value for customers.

The advantages the framework opens up

Used this way, a company can reshape the value it offers in a competitive market and open up advantages in:

1. Balancing cost and valueOptimizing cost while still strengthening value.
2. Breakthrough innovationOpening room to innovate and compete beyond industry standards.
3. Market expansionCreating new market space with little or no competition.
4. Sustainable growthBuilding a long-term foundation for growth on customer value.