​#BusinessEducation Idea building strategy The strategic | Trendfactory

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Idea building strategy

The strategic canvas is both a diagnostic tool and a strategy building tool. It reflects the current state of affairs in a known market space. This allows you to understand where competitors are investing, what are the characteristics of products that are competing in the industry, what are the service, delivery, and what competing offers customers are getting in the market.

Consider a diagram using the example of the US wine industry, in which seven key factors are distinguished:
• cost of a bottle of wine;
• noble type of packaging;
• indirect marketing;
• quality of wine aging;
• prestige of the winery and its history;
• richness and refinement of the taste of wine;
• assortment of wines

This is the basic structure of the US wine industry. Now let's move on to the vertical axis of the strategic canvas. A high indicator means that in the area of ​​this factor the company offers its customers more and makes larger investments in the development of this area. The value curve, the main component of the strategy canvas, is a graphical display of the relative performance of a company, taking into account the factors of competition in the industry.

In the case of the wine industry, by posting premium wine brands on the strategic canvas, we find that, from a market perspective, they all have the same strategies. They offer high prices and create a high level of competition.

Inexpensive wines also have nearly the same strategic profiles. The price of these wines is low, as is the supply for all key competitive factors. Moreover, the value curves for premium and inexpensive wines are almost the same, differing only in the height of the supply level.

To steer a company on a trajectory of strong profit growth in such an environment, it is not enough to match the competition. Extensive consumer research is also unlikely to pave the way. Consumers find it hard to imagine how an uncompetitive market space can be created.

To fundamentally change the strategic canvas of an industry, it is necessary to move from customers to non-customers in the industry. Why isn't someone interested in your product? What can you offer?

In the US wine industry, traditional wineries have focused on providing more prestige and quality wine for the money.

However, Australian winery Casella Wines has set a new challenge: how to create a fun unconventional wine that everyone can drink. What for? After examining the consumption of alternative drinks - beer, spirits and ready-made cocktails - which sold three times as much as wine in the United States, the firm found that the bulk of American adults considered wine "bullshit." It seemed to them something alien and pretentious. With this information, Casella Wines tackled the second basic kind of analysis: the four-action model.

We will present this model in the next article.