The six paths framework developed by Kim and Mauborgne suggests multiple ways of discovering uncovered market spaces. First it starts looking along the following dimensions:
# Looking across substitute industries
## Main question to be answered here is how customers make trade-offs between different products or services. What criteria do they use?
# Looking across strategic groups
## A strategic group consists of firms that produce a similar product or service. Firms usually compare themselves within the group but could discover new markets comparing themselves with another strategic group
# Looking across a chain of buyers
## The logic for this perspective is that the person in charge of purchasing is not necessarily the person buying the product. Can one replace distribution agencies, warehouses, in short anyone in the chain towards the final customer?
# Looking across complementary products and services
## Most products are not used in isolation but need products to complement them. One could consider offering more complementors.
# Looking across functional or emotional appeal
## Products often focus either on functional or tangible characteristics on their emotional appeal. Turning functional products into emotionally appealing ones, one can increase perceived customer benefit.
# Looking across time
## By assessing early on the future changes in the macro or competitive environment, a firm can adapt its value creation strategies based on the expected changes.
# Looking across unrelated industries
## It is also possible to look at completely unrelated industries. This will require creative leaps but has the potential of creating the most surprising insights.
Next it is important to determine a strategy for company activities:
# ''Eliminate'', Does what we do really create customer benefit? If not:which products or services should we eliminate?
# ''Reduce'', Where can we reduce our offerings? What costs us a lot of money but does not create benefit?
# ''Raise'', Where should we raise the standard of products or services? Where can we increase benefit by expanding an existing offering?
# '' Create'', What can we do what we have not done so far?
All is illustrated in the graphic below:
<<image /static/files/MBI/Module%208/sixpaths.PNG width:500>>
Sun, 12 Dec 2010 11:49:18 GMT
Sun, 12 Dec 2010 11:49:18 GMT