Managing Innovation and Corporate Entrepreneurship

Vocabulary-based flashcards focusing on innovation management, Blue Ocean Strategy, the Four Actions Framework, and brand positioning strategies.

Four Actions Framework

A tool used to create a new value curve by answering which factors should be reduced, eliminated, enhanced, and created.

Augmentation by addition

A path of convergence involving the strengthening of an existing product benefit or the addition of a new feature or benefit.

Augmentation by multiplication

A path of convergence involving the creation of specialized versions of a product to meet the needs of specific customer segments.

Heterogeneous Homogeneity

A state where growth strategies like augmentation by addition and multiplication become expensive routes to commoditization.

Blue Ocean Strategy

A strategic approach described by Kim and Mauborgne as finding or creating uncontested market space.

Red Ocean Strategy

A strategic approach characterized by competing head-to-head with direct rivals.

Strategy Canvas

A diagnostic tool and action framework for building a compelling blue ocean strategy by comparing attributes of typical firms against a Blue Ocean firm.

Reduce

The action in the Four Actions Framework that asks which factors could be reduced well below industry standards.

Create

The action in the Four Actions Framework that identifies which factors should be created that the industry has never offered.

Raise

The action in the Four Actions Framework that determines which factors should be raised well above the industry’s standard.

Eliminate

The action in the Four Actions Framework that identifies which factors that the industry takes for granted should be removed.

Reverse-positioned brands

A type of Blue Ocean brand categorized by Youngme Moon; examples include JetBlue and IKEA.

Hostile brands

A type of Blue Ocean brand categorized by Youngme Moon; examples include Hollister and MiniCooper.

Breakaway brands

A type of Blue Ocean brand categorized by Youngme Moon; examples include Huggies Pull-ups and Cirque du Soleil.

Value Curve

A graphic depiction of a company's relative performance across industry attributes, essential for identifying new market space.