Why most markets are red oceans
When companies compete on the same factors, price wars and margin erosion follow. Blue Ocean Strategy (BOS) focuses on creating new demand by reconstructing market boundaries and offering unique value at a lower cost.
Key Frameworks
Four Actions
Eliminate. Reduce factors that add cost but little value.
Reduce. Lower standards that customers don't value.
Raise. Increase factors that matter.
Create. Offer brand-new factors.
Strategy Canvas
Visual map of the industry's competing factors vs your offering’s value curve.
Six Paths
Explore alternatives: industries, buyer groups, complementary services, emotions vs function, and trends.
Strategy Canvas (Example)
This example charts key financial & insurance indicators for three companies.
How it works — Step by step
Map the Industry
Plot the current value curve and identify key competitive factors.
Explore Noncustomers
Interview beyond current buyers to uncover latent demand.
Create the ERRC Grid
Eliminate-Reduce-Raise-Create moves to reshape costs and value.
Prototype the Offering
Build a minimum viable offering and test the value proposition.
Execute & Align
Align people, processes, and pricing for market launch.
Case Studies & Examples
Cirque du Soleil
Combined circus and theater while removing costly animal acts — created a striking new value curve.
Example Company
Hypothetical: lowered operating complexity and added a new premium subscription for curated experiences.
Your Project
Use the toolkit to map your current factors and test eliminate/reduce/raise/create moves.
Get the Toolkit
Grab the toolkit (worksheet + strategy canvas template) to start prototyping your blue ocean.