ERRC Grid

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.

© Chan Kim & Renée Mauborgne. All rights reserved.

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?

© Chan Kim & Renée Mauborgne. All rights reserved.

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.

Blue Ocean Strategy & Shift Tools

Explore the foundational tools and frameworks
of blue ocean strategy and blue ocean shift

Chan Kim and Renee Mauborgne have created a comprehensive set of analytic tools and frameworks to create blue oceans of new market space.

Learn how to put these practical market-creating tools into practice to move from red ocean of competition to blue oceans of new market space and to do so in a way that people own and drive the process.

Red Ocean vs. Blue Ocean StrategyRed Ocean vs. Blue Ocean Strategy
Value InnovationValue Innovation
Strategy CanvasStrategy Canvas
Four Actions FrameworkFour Actions Framework
ERRC GridERRC Grid
Six Paths FrameworkSix Paths Framework
Pioneer Migrator Settler MapPioneer Migrator Settler Map
Three Tiers of NoncustomersThree Tiers of Noncustomers
Sequence of Creating a Blue OceanSequence of Creating a Blue Ocean
Buyer Utility MapBuyer Utility Map
Price Corridor of the MassPrice Corridor of the Mass
Four Hurdles to Strategy ExecutionFour Hurdles to Strategy Execution
Tipping Point LeadershipTipping Point Leadership
Fair ProcessFair Process

All analytic tools © Chan Kim & Renée Mauborgne. All rights reserved.

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