Intrapreneurship and Corporate Venturing 401
budget) produces the initial canvas. Note that the factors are the same for each seg-
ment and so is the price/value ratio. Asked what they want, customers will respond,
“More value for less price”—the equivalent of a faster horse.
- Thefour actions frameworkgets away from simply offering more for less. In the
case of the wine industry the question became: How do we get nonconsumers to
drink wine? Instead of competing against other wine producers for the same cus-
tomers, Australia’s Casella Winery looked for an alternative—competing against
nonconsumption of wine. The four actions are:- Elimination: What factors can be done away with completely? The competitors
assume these are important, but are they? - Reduction: What factors can be lowered significantly without a loss of value for
nonconsumers? - Raise: What factors can be raised above industry averages to seduce the noncon-
sumer? - Creation: What factors can be added to create value for the nonconsumer?
By applying these actions to the strategy canvas, the intrapreneur creates a new
value curve as illustrated in Figure 10.2.
- Elimination: What factors can be done away with completely? The competitors
Premium Wines
Low
Price Above-the-line
marketing
Aging
quality
Vineyard prestige
and legacy
Wine
complexity
Wine
range
Budget Wines
Use of enological
terminology and
distinctions in wine
communication
High
z z z z
z
z z
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Figure 10.1 The Strategy Canvas of the U.S. Wine Industry in the Late 1990s
SOURCE: W. C. Kim and R. Mauborgne, Blue Ocean Strategy (Cambridge, MA: Harvard Business School Press, 2005).