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Analytical Tools & Frameworks. Group 6 Justin Shamp Ryan Moeller Michael Grizzle Stuart Gaston Tate Roueche Rachel Camunez. Shell. F ounded in 1900 as the Royal Dutch Shell Company (England and Wales) A global organization of energy and petrochemical companies
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Analytical Tools & Frameworks Group 6 Justin Shamp Ryan Moeller Michael Grizzle Stuart Gaston Tate Roueche Rachel Camunez
Shell Founded in 1900 as the Royal Dutch Shell Company (England and Wales) A global organization of energy and petrochemical companies 2nd largest globally in revenue as of 2011 Core Values: “honesty, integrity and respect for people” http://www.youtube.com/watch?v=kIrFlBIlqcE
Example • U.S. wine industry • 3rd largest consumption of wine worldwide • Competes against other major wine countries • Top 8 wine makers in the U.S. produce more than 75% • [yellow tail] • Created a blue ocean by having wine resemble the characteristics of the Australian culture • Bold, laid back, fun and adventurous • Ended up appealing to a broad cross section of alcoholic beverage consumers
The Strategy Canvas • Serves 2 purposes • Captures the current state of play in the market place (horizontal axis) • Allows you to understand what is being invested in by the competition • Allows you to understand the factors the industry currently competes in • Makes you see what customers are receiving from the competition • Captures the offering level that buyers receive across all these key competing factors (vertical axis) • High score = a company offers buyers more, which means they invest more • In case of price a high score = high price
Value Curve • Value curve • A graphic depiction of a company’s relative performance across its industry’s factors of competition
The 4 Actions Framework Reduce Which factors should be reduced well below the industry’s standard? Eliminate Which of the factors that the industry takes for granted should be eliminated? Create Which factors should be created that the industry has never offered? A New Value Curve Raise Which factors should be raised well above the industry’s standard?
Eliminate-Reduce-Raise-Create Grid EX: Yellow Tail wine
Eliminate-Reduce-Raise-Create Grid EX: Shell
3 Characteristics of a Good Strategy • Focus • Not diffusing efforts across all key factors of competition • Divergence • How you differentiate from the competition • Compelling Tagline • “Passionate about our products and the people who use them”
Reading the Value Curves • A blue ocean strategy • Meets the 3 characteristics of a good strategy: focus, divergence, and a tagline • A company caught in the red ocean • When a company’s value curve converges with competitors • Overdelivery without payback • A company’s value curve has high levels of all factors across the strategy canvas but maybe oversupplying customers • An incoherent strategy • The company has independent substrategies • Strategic contradictions • A company is offering a high level on 1 factor while ignoring others • An internally driven company • How does a company label the industry’s competing factors