Four Actions Grid Analysis
To reconstruct buyer value elements in crafting a new value curve, the Four Actions Framework is used. There are four key questions to challenge an industry's strategic logic and business model:
Which of the factors that the industry takes for granted should be eliminated?
The following factors should be eliminated: (1) aging qualities and (2) above-the-line marketing.
Which factors should be reduced well below the industry's standard?
The following should be reduced: (1) the range of clothes and (2) complexity involved with the delivery.
Which factors should be raised well above the industry's standard?
There following issues should be raised (1) price versus budget clothes and (2) retail store involvement.
Which factors should be created that the industry has never offered?
(1) Easy shopping experience, (2) ease of selection, and (3) fun and adventure.
The eliminate-reduce-raise-create model pushes companies not only to ask all four questions in the four actions framework but also to act on all four to create a new value curve. By driving companies to fill in the model with the actions of eliminating, reducing, raising, and creating, the model provides four immediate benefits: it pushes them to simultaneously pursue differentiation and low costs; identifies companies who are only raising and creating thereby raising costs; makes it easier for managers to understand and comply; and it drives companies to scrutinize every factor the industry competes on.