What is the ERRC framework?
The Eliminate-Reduce-Raise-Create (ERRC) Grid is an essential tool of blue ocean strategy developed by Chan Kim and Renée Mauborgne. It is a simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean.
How many principles are there in blue ocean strategy?
Principles of Blue Ocean Strategy are the six main principles that guide companies through the formulation and execution of their Blue Ocean Strategy in a systematic risk minimizing and opportunity maximizing manner.
What is the 4 Actions Framework?
The four action framework points out four key actions to take into account to refine existing products. Those are: raise, reduce, eliminate, and create. To plot the available consumer products in a marketplace against the company’s ability to provide value and thus be competitive over time.
What is the cornerstone of blue ocean strategy?
Implementing Value Innovation Value Innovation is the cornerstone of the blue ocean strategy. In creating new markets, value to customers comes from the offering’s utility minus its price.
What are the four steps in visualizing strategy?
The Four Steps of Visualizing Strategy set out by Kim and Mauborgne (2002) emphasised on the four visuals; Visual Awakening, Visual Exploration, Visual Strategy Fair and Visual Communication.
Which of the following describes a blue ocean strategy?
Which of the following best describes the blue ocean strategy? A firm using a blue ocean strategy tries to make the competition irrelevant.
What is the key implication of the Blue Ocean Strategy Framework?
The key premise of the Blue Ocean strategy is that companies must unlock new demand and make the competition irrelevant instead of going down the beaten track and focusing on saturated markets.
What is an example of shifting the strategic focus to blue ocean strategic logic?
Canon’s strategic move, which created the personal desktop copier industry, is a classic example of blue ocean strategy. Defying the industry logic, the Japanese company Canon created a blue ocean of new market space by shifting the target customer of the copier industry from corporate purchasers to users.
Who are the creators of the Blue Ocean framework?
Break the value-cost trade-off and create a blue ocean with four central questions. Blue Ocean 4 Actions Template was created by W. Chan Kim and Renée Mauborgne. They are Professors of Strategy at INSEAD, one of the world’s top business schools, and co-directors of the INSEAD Blue Ocean Strategy Institute in Fontainebleau, France.
What are the principles of blue ocean strategy?
The basic principle of Blue Ocean Strategy is to map out, in addition to the (already) known markets (‘red oceans’), the ‘blue oceans. These blue oceans document new markets and new opportunities. Furthermore, it is surprising that ‘blue oceans’ are already used and applied unconsciously by strategists in the current strategies.
When to use the Four Actions Framework framework?
This way, you are getting the most value with the least cost within the total product market. The Four Actions Framework is most useful when you help create value innovation and break the value-cost trade-off. W. Chan Kim and Renée Mauborgne use terms red and blue oceans to describe the market universe.
Why do you need a 4 actions template?
The 4 Actions Template can help you assess whether you are spending money in the correct ways around your product to maximize user gain and minimize user pain. Identify the pains that really matter for your product and the gains that really matter with this template.