What is a Strategy Canvas?

A Strategy Canvas is a Tool that helps to Evaluate different Products, Services or Companies by comparing them with each other.

 

To do so, it proposes to:

  • List the Metrics that best define the Product (Service, Company, etc…).
  • Define the Range which will evaluate how Good or Bad these Metrics are.
  • Plot different Lines that Represent the elements to be compared.

 

This allows to evaluate different elements at a Glance, without much effort.

Strategy Canvas Template.

How to create a Strategy Canvas

Strategy Canvases can be created in many different ways.

  • There is no single correct way of developing it.

 

However, we strongly recommend following 3 fundamental principles:

  • 1. Use Representative Metrics.
  • 2. Define their Ranges Clearly.
  • 3. Keep things Simple.

 

Let’s see it in more detail with some examples:

Use Representative Metrics

 

These Metrics will Define your Product, Company… Your overall Analysis.

  • Take your time looking for the variables that best describe them.

 

Think carefully:

  • What best Defines the Product you are analyzing? (Or Company, Service, etc…).
  • What makes this Product Desirable to Customers?
  • What makes this Product Profitable for your Company?

 

Examples

 

Some of the most employed Metrics are:

  • Price.
  • Popularity.
  • Complementary Products.
  • Technical Specifications.
    • Battery duration.
    • CPU.
    • RAM, etc.

Define the Ranges Clearly

 

The Ranges you choose will Evaluate if a Product (Company, Service…) is doing well or not.

 

What is considered to be Good, Bad or Average, should be perfectly defined.

  • With Numbers, in a Measurable way.

 

You can use a common Ranking (such as we did) but, for each Metric, this Range of values must mean something different.

  • In Prices, Good can mean Expensive (specify the amount)… Or Cheap.
  • In Technical Specifications, this Ranking would mean a completely different thing.
    • Battery duration (in hours).
    • Compatibility (number of programs compatible).
    • etc.

 

Examples

 

Common parameters that Define the Ranges of the Metrics that we explained before:

  • Price:
    • Good: Expensive or Cheap, depending on the Point of View analyzed.
  • Popularity:
    • Social Media Impact; Follows, Likes, Searches on the Internet, etc.
  • Complementary Products:
    • Amount of compatible Products (Video games, Components, etc).
  • Technical Specifications:
    • Battery duration: Hours or autonomy.
    • CPU capacity, RAM, etc: The higher, the better.

Keep things Simple

 

There is something worse than an over-simplistic analysis:

  • An Extensive analysis from which it is almost impossible to draw a conclusion from it.

 

Since it is not a very difficult Tool to use, lots of Professionals end up creating enormous Canvases.

This is a Big mistake.

 

It is very Difficult to assess Correctly lots of Metrics.

 

Therefore, Analysts tend to speculate.

  • Generating invalid data that misguides their actions.

 

Remember

 

Use as many Metrics as you can Properly and Objectively evaluate.

  • These metrics must be able to be analyzed with real objective numbers.

 

Use a Range where it is Easy to tell the difference between the various Scores.

  • More than 5 categories (good, mid-good, Average, mid-bad, bad) tend to be confusing.

Now we will give you different Examples of Strategy Canvases so that you understand this Tool much better:

Strategy Canvas examples

We have developed 4 Strategy Canvases of different Products from different companies.

  • In very different Markets.

 

We’ll then analyze How different companies are positioned in the Market by comparing them each other.

  • Of course, we have generalized quite a bit in these examples.
    • We just want you to understand the Concept and How to use this Tool.

 

Let’s begin:

TVs - Strategy Canvas example

 

Let’s imagine that you work for a Television company (like Sony, LG, etc).

  • And, you are analyzing the Strategies followed by your competitors.

 

You want to prepare a visual document that it is easy to understand.

  • You will use it in a Presentation for your Boses and Employees.

 

You decide to use a Strategy Canvas:

 

Metrics and Ranges employed

 

Price: You are looking at these Products from a Business point of view.

  • Range: The more expensive, the better.

Popularity: You want to evaluate How many People is using their Products.

  • Range: Market Share.

Specs (Technical Specifications): How advanced their TVs are.

  • Range: You use the average Resolution and Processor employed.

Compatibility: How compatible these TVs are with the different platforms (Netflix, HBO, etc).

  • Range: The more Platforms and Software compatible, the better.

 

*  Since we are not experts in this particular field, we have had to come up with some figures.

  • This is just one example of how you could use a Strategy Canvas.

Electric Vehicles - Strategy Canvas example

 

Now, we’ll imagine that you work for an Automobile company.

  • And you are analyzing the Electric Vehicle segment.

 

Once you’ve gathered all the data, you decide to summarize it using a Strategy Canvas:

 

Metrics and Ranges employed

 

Price: You are looking at these Products from a Business point of view.

  • Range: The more expensive, the better.

Manufacturing Costs: You want to evaluate the Margins that the companies obtain.

  • Range: Low Costs are Good. NIO is located in China: Good; Leaf in Japan:  Bad.

Battery: One of the most important Metrics (if not the most) is Autonomy.

  • Range: The more autonomy, the better.

Support: If you need Technical assistance, how well you will be served.

  • Range: The more car dealers they have, the better.

 

*  Since we are not experts in this particular field, we have had to come up with some figures.

  • This is just one example of how you could use a Strategy Canvas.

Fast Food Restaurants - Strategy Canvas example

 

Now, we’ll imagine that you work for a Fast Food Company.

  • And you are analyzing your Competitors.

 

This time, you want to put yourself in the shoes of your Clients.

  • In this way, you can find out what they value the most in a Fast Food restaurant.

 

Once again, you decide to use a Strategy Canvas to summarize your analysis:

 

Metrics and Ranges employed

 

Burgers: How much Customers like their hamburgers.

  • Range: You will use Internet Rankings (Facebook, Instagram polls, etc.).

Fries: How much Customers like their French Fries.

  • Range: You will use Internet Rankings (Facebook, Instagram polls, etc.).

Chicken: How much Customers like their Chicken options.

  • Range: You will use Internet Rankings (Facebook, Instagram polls, etc.).

Variety: How diverse is their Menu.

  • Range: The more options, the better.

 

*  Since we are not experts in this particular field, we have had to come up with some figures.

  • This is just one example of how you could use a Strategy Canvas.

Video Game Consoles - Strategy Canvas example

 

Finally, we’ll imagine that you work for a Game Console Company.

  • You are analyzing your Competitors, and what strategies they are following.

 

On this occasion, you have decided to analyze the different game consoles from the Customer’s point of view.

 

Obviously, you have decided to use a Strategy Canvas:

 

Metrics and Ranges employed

 

Price: You are looking at these Products from the Customer’s point of view.

  • Range: The more affordable, the better (X-Box has a “cheap” version: Series S).

Catalog: You want to evaluate How many games each console has.

  • Range: The more game franchises and exclusive releases, the better.

Old Games: How compatible are Game Consoles with their predecessors.

  • Range: The higher the compatibility, the better.

Platform: How good are their Game Networks (Game Pass, online Stores, etc).

  • Range: The more games available, the better.

 

*  Since we are not experts in this particular field, we have had to come up with some figures.

  • This is just one example of how you could use a Strategy Canvas.

Summarizing

A Strategy Canvas is a Tool that helps to Evaluate different Products, Services or Companies by comparing them with each other.

 

To do so, it proposes to:

  • List the Metrics that best define the Product.
  • Define the Range, which will evaluate how Good or Bad these Metrics are.
  • Plot different Lines that Represent the elements to be compared.

 

We strongly recommend following 3 fundamental principles:

  1. Use Representative Metrics.
  2. Define their Ranges Clearly.
  3. Keep things Simple.

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