ERRC Grid

The Eliminate-Reduce-Raise-Create (ERRC) Grid developed by W. Chan Kim and Renée Mauborgne 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.

Eliminate
Which factors that the industry has long competed on should be eliminated ?

Raise
Which factors should be raised well above the industry’s standard?

Reduce
Which factors should be reduced well below the industry’s standard?

Create
Which factors should be created that the industry has never offered?

This analytic tool complements the Four Actions Framework. It pushes companies not only to ask the questions posed in the Four Actions Framework but also to act on all four to create a new value curve (or strategic profile), which is essential to unlocking a new blue ocean. The grid gives companies four immediate benefits:

It pushes them to simultaneously pursue differentiation and low cost to break the value-cost trade off.
It immediately flags companies that are focused only on raising and creating, thereby lifting the cost structure and often over-engineering products and services – a common plight for many companies.
It is easily understood by managers at any level, creating a high degree of engagement in its application.
Because completing the grid is a challenging task, it drives companies to thoroughly scrutinize every factor the industry competes on, helping them discover the range of implicit assumptions they unconsciously make in competing.

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Blue Ocean Strategy & Shift Tools

Chan Kim and Renée Mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space. In their 2017 New York Times bestselling book, Blue Ocean Shift, Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.

Learn the tools and frameworks to execute successful blue ocean shifts through our online Blue Ocean Practical Introduction™ course. This online course is designed to show you how to create your blue ocean and make the competition irrelevant.

Blue Ocean Strategy & Shift Tools

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