Blue Ocean Strategy by W. Chan Kim, Renee Mauborgne

To quit bleeding in the red ocean of price wars and step into clear blue waters where rivals are absent and profits grow through value innovation.

“Value innovation is the cornerstone of blue‑ocean strategy.” — W. Chan Kim & Renée Mauborgne

5 tools from the book and how to use them this week

#	Book tool	What to do in 7 days
1	Strategy Canvas	List 6–8 competitive factors in your industry. Plot two lines—yours and the leader’s. The gaps show where you copy and where you could stand out.
2	Four Actions Framework (ERRC Grid)	From the Canvas fill the four boxes: Eliminate, Reduce, Raise, Create. Put at least one item in every box—this removes the trade‑off between price and value.
3	Six Paths Framework	Walk the six paths: 1) Alternative industries 2) Strategic groups 3) Buyer chain 4) Complementary offerings 5) Functional vs emotional appeal 6) Trends over time. Capture one insight per path.
4	Three Tiers of Noncustomers	Interview all three layers: soon‑to‑be → refusing → unexplored. Spot a barrier you can remove via ERRC.
5	Price‑Cost Sequence	After ERRC run the sequence: 1) Utility via the Buyer Utility Map 2) Strategic price in the mass corridor 3) Target cost. If target cost beats current cost—move forward.

30‑day implementation roadmap (straight from the book)

1. Week 1 — Strategy Canvas + Six Paths brainstorming.
2. Week 2 — Interviews with three tiers of noncustomers → ERRC Grid.
3. Week 3 — Buyer Utility Map + Price‑Cost Sequence, unit‑economics check.
4. Week 4 — Tipping‑Point Leadership: identify key influencers, launch a pilot, and apply Fair Process (explain, engage, clarify).

Book case — Cirque du Soleil

Eliminate — trained animals, superstar acrobats.
Reduce — number of annual shows.
Raise — theatrical music, storyline, costumes.
Create — drama and narrative.
Result: circus becomes “theatre‑circus”, ticket price ↑, costs ↓.

Remember this

• Value innovation = high perceived value + low cost.
• ERRC is the core: drop the needless and create the new at once.
• Blue oceans fade — redraw your Canvas every 2–3 years.

“Strategy is about choosing what not to do.” — Kim & Mauborgne

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5 tools—Canvas, ERRC, Six Paths, Noncustomers, Price‑Cost Sequence—form a step‑by‑step playbook for creating competition‑free markets. Take one step per week and validate with numbers.