✅ Use this to…

…totally understand the concept of “value”, the thing you’re actually selling.

🧐 Explanation

Strategy is all about finding a way to give value to the market.

There are infinite ways to do this, however they can generally all be categorised into 4 broad types of value, which are consistent across industries.

Use this grid to plot your competitors and find underserved parts of your own market.

🛠️ Do this

1. Review the following 4 broad types of value:

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General audience, unique problem

When a company delivers a specific form of value that could apply to many different types of customer.

E.g. IKEA, accessible designer interiors

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Remove functionality for over-served market

Stripping back service to reduce cost, the general approach of all budget oriented brands.

E.g. Ryanair, low cost airline

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General problem, unique audience

When a company does something generic, but for a specific underserved group of customers.

E.g. Diamond, car insurance for women

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Add functionality for under-served market

Adding functionality and service to create more premium offering, the standard luxury play.

E.g. Luis Vuitton

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1. Place your competitors roughly in each one of these spaces
2. Place yourself currently
3. See where the market is clustering, and if there are any obviously unexplored areas

Please note: the top two categories can support many brands because their diversity can be unlimited, but the bottom two categories can support fewer brands because they are more one-dimensional.