Strategy canvas

Strategy canvas is a strategic tool that allows us to know the proposals offered by a certain market analyzing all the companies present, compared to the proposed value that our company will offer with its new product / service, all represented in a single graphic which allows us to understand at a glance to know and appreciate the differences between the strategic profile of the market and the strategic profile of our new proposal.

This tool is part of the methodology by which we can develop our blue ocean strategy, abandoning the classic concepts of strategy by which efforts are focused on how to snatch and defeat competitors present in the market.

Strategy canvas is a graph composed of 2 axes:

By means of the following example we will perfectly understand each one of the concepts indicated above, understanding the easy and valuable information that this powerful tool gives us.

Strategy canvas example - Uber / Cabify vs Taxi

Uber and Cabify are two multinational companies that have completely revolutionized and redefined the people transport sector, competing directly with the traditional taxi sector. Both companies have developed their blue ocean strategy through their innovative value proposition whereby the customer who chooses their service has to feel a new, differentiated and quality experience at an economic price, all through the use of technology and with a few simple clicks from your application.

To analyze the strategy canvas of both companies we will compare them with the traditional taxi, defining the following attributes or characteristics:

Price

Both these new transportation technology companies and the traditional taxi have similar prices, with different price policies, the economic differences per journey are not significant.

Security

Both Uber and Cabity have different measures that ensure both the safety of the driver and the passenger at all times. Once the service has been taken, both the driver and the passenger have the ability to score through the application, with the assessment being totally anonymous between the two.

On the other hand all vehicles have a record of the route via GPS through which you know at all times who is the driver, who is the passenger as well as the route and position can share and send this information with our family, friends. ..

Finally, both applications have a security button that, if necessary, puts you in contact with the local authorities.

All these advantages are implemented by both companies through the use of technology and its application, not having these the traditional taxi.

Comfort and Cleanliness

In the traditional sector, each taxi driver maintains and offers the level of comfort and cleanliness that he considers, finding us with impeccable taxis and others with traces of food, smell of smoke, damage to the seats, lack of cleanliness ...

On the other hand both Uber and Cabify, have programs and standards that ensure the correct cleaning and comfort of the vehicle, offering free extra services such as Wi-Fi, mobile phone charger, water bottles ... increasing the comfort of the passenger, likewise both driver as the passenger have the obligation to keep the vehicle clean during the journeys.

Exclusiveness

Uber / Cabity have a fleet of professional drivers in which both the clothing and a polite and respectful tone of conversation are the norms of the company, likewise the vehicles used in these companies have to meet certain requirements such as being black (associated to luxury), have a minimum of 5 doors, a maximum age of 6 years in addition to being a medium-high-end vehicle, giving all this an exclusive experience to customers.

On the other hand, Taxi drivers do not have regulated clothing, they use inexpensive vehicles with the objective of maximizing their consumption and maintenance, all being the same color (white, yellow ...) depending on the location where they operate.

Availability

Thanks to the use of technology both Uber and Cabify allow you to know at all times the estimated time it will come to pick up your car, likewise the punctuality of the driver in those cars previously reserved is one of the qualities best rated by its users.

Traditional taxi sector has a good coverage in areas and schedules of high affluence, but in areas and hours where activity decreases can be complicated or even impossible to find this service, being necessary to call taxi unions where a tele-operator sends the request to available taxis that are operating near the collection area.

Payment

Thanks to the application available to Uber as Cabify offer the possibility of making the payment of the service both electronically and in cash, being a convenience for all those customers who increasingly leave their wallets at home and make payments through your mobile or smartwatch.

On the other hand, the use of the application as a payment method allows customers to use promotions with discounts for their next trips.

Technology

Both Uber and Cabity use available technology as a platform to offer, analyze and optimize their activities, offering their clients additional services such as geolocation of the vehicle, possibility of selecting the model and driver of the vehicle, secure electronic payment, sending and receiving messages from the driver...

Once each of these attributes or characteristics is analyzed, we proceed to rate them with a scale of 0 to 10 according to the attached table;

 

Name Price Security Comfort Clean Exclusivity Payment Technology
Uber / Cabify 5 9 10 10 9 9 10
Taxi 5 6 4 6 2 6 2

With this data we start to construct our strategy canvas resulting in the following graph:

Thanks to the value curve we can understand at a glance the strategic profile of the companies / markets analyzed, in our example we clearly observe the pillars and the differences between Uber / Cabify and the traditional taxi market.

We observe that with the same price level both Uber and Cabify offer better services in terms of quality, being the strong point the use of technologies as a means to offer these high quality standards. In this sense, the taxi sector is reacting generating its own applications that imitate this business model, taking into account the differences in volume of transactions and standards.

Strategy Canvas


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