The Four Actions Framework is a strategic management tool designed to help businesses innovate and differentiate themselves from competitors. It encourages organizations to simultaneously pursue differentiation and low cost by asking four key questions that challenge industry norms and drive companies to reevaluate their product offerings. This framework is part of the Blue Ocean Strategy, which aims to create new market spaces, making the competition irrelevant.
Eliminate: Identify and remove factors that the industry takes for granted but may no longer have value or relevance. | Reduce: Determine which factors should be reduced well below the industry's standard. | Raise: Identify and enhance factors that should be raised above the industry's standard. | Create: Pinpoint and create factors that the industry has never offered, which could create new demand.
Thoroughly research customer needs and industry trends before applying the framework | Use cross-functional teams to gain diverse perspectives | Regularly review and adapt strategies based on market response
Encourages out-of-the-box thinking and innovation | Helps create unique value propositions and new market spaces | Focuses on both cost savings and differentiation
Risk of misunderstanding customer needs | Potential for increased complexity in execution | May require significant resources and time to implement
When seeking to enter or create a new market | When existing products or services are becoming commoditized
In highly regulated industries where changes are limited | When immediate results are required, as the framework may take time to yield results