The "4 framework" you are likely referring to is The Four Actions Framework, a strategic tool used primarily for developing a product's sales and marketing strategy and creating uncontested market space, as discussed in strategic blue ocean thinking.
Understanding The Four Actions Framework
Based on the provided reference, The Four Actions Framework is a systematic approach that helps businesses innovate and create value for buyers by strategically rethinking their offerings. It is mostly used to create a product's sales and marketing strategy. Its core purpose is to refashion the buyer's values by concentrating on four distinct actions.
By applying this framework, companies can simultaneously differentiate themselves and lower their cost structure, moving away from head-to-head competition.
The Four Distinct Actions
The framework centers around answering four key questions related to an offering compared to the industry standard:
- Which factors should be Eliminated?
- Insight: What factors that the industry has long competed on should be eliminated? These might be factors that are costly but don't add significant value to the buyer anymore.
- Which factors should be Reduced?
- Insight: What factors should be reduced well below the industry standard? These are factors that add some value but are over-delivered on by the industry, leading to unnecessary costs.
- Which factors should be Raised?
- Insight: What factors should be raised well above the industry standard? These are factors where investing more could significantly enhance buyer value.
- Which factors should be Created?
- Insight: What factors should be created that the industry has never offered? This involves discovering entirely new sources of buyer value.
These four actions—reduce, eliminate, raise, and create—form the basis of the framework. They encourage companies to look beyond existing boundaries and conventional competitive factors.
Benefits of Using The Four Actions Framework
Implementing this framework offers significant advantages:
- Increased Buyer Value: By strategically raising and creating factors, businesses can offer something uniquely valuable to their customers.
- Reduced Cost Structure: Eliminating and reducing unnecessary or over-delivered factors cuts the overall cost of the product and sales and marketing efforts.
- Differentiation: The act of creating and raising factors distinctly positions an offering away from competitors.
- Strategic Clarity: It provides a clear, actionable process for thinking about how to change an offering.
Ultimately, leveraging the reduce, eliminate, raise, and create actions helps businesses develop innovative offerings that deliver high value at a lower cost, refashioning buyer value and competitive dynamics.
