four-actions-framework-web

Blue Ocean 4 Actions Framework Template

Break the value-cost trade-off and create a blue ocean with four central questions.

About the Blue Ocean 4 Actions Framework template

The Four Actions template is designed to help entrepreneurs think in more innovative ways about the products they are creating relative to the industry. The framework will help you maximize user value and eliminate unnecessary product features by eliminating and reducing user pain, and raising and creating user gain. 

Who created the 4 Actions Framework for Blue Ocean Strategy?

The Blue Ocean Four Actions Framework was created by W. Chan Kim and Renée Mauborgne. They are Professors of Strategy at INSEAD, one of the world’s top business schools, and co-directors of the INSEAD Blue Ocean Strategy Institute in Fontainebleau, France. Together, they wrote a best-selling book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.

Why use the Four Actions Framework?

The Blue Ocean Four Actions Framework can help you assess whether you are spending money in the correct ways around your product to maximize user gain and minimize user pain. Identify the pains that really matter for your product and the gains that really matter with this template. This way, you are getting the most value with the least cost within the total product market.

When to use the Four Actions Framework Template

The Four Actions Framework Template is most useful when you help create value innovation and break the value-cost trade-off. W. Chan Kim and Renée Mauborgne use the terms red and blue oceans to describe the market universe. They say that ‘red oceans are all the industries in existence today—the known market space.’ In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. As the market space gets crowded, prospects for profits and growth are reduced. Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. So the Blue Ocean 4 Actions Framework Template is a great tool to consider when you feel like your company or your product is stuck in the ‘red ocean’ and you are looking for ways to innovate.

How to use the 4 Actions Framework template

Step 1: Eliminate

In each column, it’s important to ask questions about the industry standards in your product space. First, ask yourself, which factors that the industry has long competed on should be eliminated?

Think of the factors that require a lot of investment and effort, but don’t bring a lot of revenue/new customers and, in general, don’t drive key metrics up. These can also be the factors that made more sense in the past but are not as useful now — for example, a feature of differentiated a digital product in the past but became obsolete as time passed.

Step 2: Reduce

Which factors should be reduced well below the industry’s standard? Think of the features/characteristics of your product that are well designed to beat the competition but take to much time and resources. Can you strip this down to something more simple but still competitive and relevant to your users?

Step 3: Raise

Which factors should be raised well above the industry’s standard? What are the pain points that the market does not address? Think of the way you can build features that will help your customers solve challenges that other companies are not solving.

Step 4: Create

Which factors should be created that the industry has never offered? This is one of the most challenging questions and it requires a deep understanding of your customers’ interests and desires, as well as a good insight into where the industry is going. The goal is to think about the future and the challenges customers haven’t articulated yet.

FAQ about the Four Actions Framework

What is the Four Actions Framework?

The Four Actions Framework is a blue ocean strategy tool that poses four central questions designed to help you create value innovation and break the value-cost trade-off. These four key questions or actions include: Eliminate, Reduce, Raise and Create. The framework helps you raise and create customer value, and reduce or eliminate what is not needed.

Blue Ocean 4 Actions Framework Template

Get started with this template right now.

Related Templates
Breakout-group-thumb-web
Preview
Breakout Group Template
SMART Goals Thumbnail
Preview
SMART Goals Template
Presentation Thumbnail
Preview
Presentation Template
 Business Model Canvas Template in Miro
Preview
Business Model Canvas Template
Eisenhower Matrix Thumbnail
Preview
Eisenhower Matrix Template
Corrective Action Plan Thumbnail
Preview
Corrective Action Plan Template