GROUP 6JUSTIN SHAMPRYAN MOELLER

MICHAEL GRIZZLE STUART GASTONTATE ROUECHE

RACHEL CAMUNEZ

Analytical Tools & Frameworks

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

A New Value Curve

ReduceWhich factors should be reduced well below the industry’s standard?

CreateWhich factors should be created that the industry has never offered?

Eliminate Which of the factors that the industry takes for granted should be eliminated?

RaiseWhich factors should be raised well above the industry’s standard?

Eliminate-Reduce-Raise-Create Grid

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

EX: Yellow Tail wine

Eliminate-Reduce-Raise-Create Grid

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

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

taglineA company caught in the red ocean

When a company’s value curve converges with competitorsOverdelivery 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