The Strategy Canvas is both a diagnostic tool and an action framework. From a diagnostic point of view, it is used to capture what is happening in the existing market space. The following example from the book describes the US wine market prior to Casella Wines introduction of Yellow Tail.
This paints a picture of where the competition is currently investing and the factors they compete on in products, services, delivery and what customers receive from the existing offerings.
The Four Actions Framework asks four key questions to challenge an industry’s preexisting norms.
The eliminate and reduce questions lead you to gaining an insight into how to drop your cost structure while the create and raise questions lead you to gaining an understanding into how to increase customer value and generate new customer demand.
The third tool supplements the second encouraging action. The example below shows how Casella Wines answered those four key questions.
This resulted in a strategy canvas that looked like the following for Casella Wines’ new Yellow Tail brand in the US wine market.
You can see from the above picture, Yellow Tails curve has three very important characteristics.
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