1. Analytical Tools & Frameworks
Group 6
Justin Shamp
Ryan Moeller
Michael Grizzle
Stuart Gaston
Tate Roueche
Rachel Camunez

2. 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”

3. Example U.S. wine industry [yellow tail]
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

4. 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

5. Value Curve Value curve
A graphic depiction of a company’s relative performance across its industry’s factors of competition

6. The 4 Actions Framework Reduce Eliminate Create A New Value Curve
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?

7. Eliminate-Reduce-Raise-Create Grid
EX: Yellow Tail wine
ELIMINATE
Enological terminology & distinctions
Aging qualities
Above-the-line marketing
RAISE
- Price versus budget wines
REDUCE
Wine complexity
Wine range
Vineyard prestige
CREATE
Easy drinking
Ease of selection
Fun and adventure

8. Eliminate-Reduce-Raise-Create Grid
EX: Shell
ELIMINATE
Harmful chemicals & substances in the gas that ruins engines
The lowest price & quality of gas
RAISE
Quality
Idea that low price gas will harm your vehicle’s engine
REDUCE
Low quality gas that corrodes engines
CREATE
Gas that performs better & doesn’t harm a vehicle’s engine

9. 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”

10. 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