Despite uncountable strategies in business marketplace assessment, still business owners find themselves parched in search of real guidance, therefore several innovative tools have been introduced to check the business status comprehensively. One of these is the strategy canvas tool. W.Chan Kim and Renee Mauborgne have introduced this tool in their book Blue Ocean Strategy as a graphic chart plotting business competitors against the marketplace winning factors. The horizontal line demonstrates the competitive factors while the vertical axis displays a level of services and offers by different businesses.
What is the strategy canvas?
Strategy canvas is a graphical representation that enables a business to conduct competitive analysis. It is basically a graph which is plotted between the factors which are considered very important by an organization. The business can also easily formulate a strategy to give a tough time to its competitors with the help of strategy canvas.
The strategy canvas template is a combination of x and y-axis. On the x-axis, several competitions related factors are plotted against the performance rating of the company on the y-axis. In this way, you can consider two companies and make a better comparison between them. The good points and flaws both are considered to reach the conclusion.
The graph represents the divergence in market demands and business strategies. A new value is determined through this strategy canvas. The value curve is the fundamental findings of the strategy canvas. It is a graphic illustration of a business relative performance diagonal to the factors of competition. Strategy Canvases provide a track of interpreting that with what strategies your competitors attract customers; additionally, it identifies how your customers prefer the product or service in your category.
This allows you to stand uniquely in the market by applying exclusive genre and combination of factors on which you can compete successfully. If you are vigilant enough to identify your rivals or competitors either by brand names or by a cluster of entrepreneurs working in the similar field, of your business and you are expert enough to bring innovative competitive factors, then you can effectively analyze the competition. For a workable analysis, a strategic canvas chart should be practically drawn with a line for each competitor and their performance according to the customer’s preferable factors.
This sketching is a bit complex procedure, therefore, many business people are taking help from pre-formatted customized templates to draw their Strategy Canvas Graphics.
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Strategy Canvas Template
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Strategy Canvas Template-2
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How to use the strategy canvas template?
The strategy canvas template is available to be downloaded free of cost. The user can also use this tool online. The template provides the ease with which the strategy canvas can be prepared. The template can be used by following below mentioned steps:
- Take people working in different companies and ask them to provide you information about the value propositions and lots of other things.
- Each person should be given some time to sit back and think of what factors their organization is competing with others. They should also be given the time to think about the primary differentiators.
- Make a group in which keep all the similar factors noted by different people
- Then ask each individual to think about how their organization is performing those factors.
- Tell them to rate the value of the competitor’s proposition.
- Let them define the primary competitors.
- After finding out all the propositions, compare them well.
- Discuss the results with all the people.
What is the purpose of using the strategy canvas?
The purpose of the strategy canvas is to identify all those propositions that can help you rate the performance of the organization. This rating is very important for an organization since it enables it to make competition related strategies It also enables an organization to consider the market which it has been ignoring.