Six Paths Framework
|Head-to-Head Competition||Blue Ocean Creation|
|Industry||Focuses on rivals within its industry||Looks across alternative industries|
|Strategic Group||Focuses on competitive position within strategic group||Looks across strategic groups within industry|
|Buyer Group||Focuses on better serving the buyer group||Redefines the industry buyer group|
|Scope of Product or Service Offering||Focuses on maximizing the value of product and service offerings within the bounds of its industry||Looks across to complementary product and service offerings|
|Functional-emotional Orientation||Focuses on improving the price performance within the functional-emotional orientation of its industry||Rethinks the functional-emotional orientation of its industry|
|Time||Focuses on adapting to external trends as they occur||Participates in shaping external trends over time|
© Kim & Mauborgne. All rights reserved.
The Six Paths Framework developed by W. Chan Kim and Renée Mauborgne allows managers to address the search risk many companies struggle with. It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries.
There are six basic approaches to reconstructing market boundaries. These challenge the six fundamental assumptions underlying many companies’ strategies that keep companies trapped competing in red oceans. Instead of looking within the accepted boundaries of competition, the Six Paths Framework allows managers to look systematically across them to create blue oceans.
The table outlines these six basic assumptions and the pathway managers can take to break away from head-to-head competition towards blue ocean creation.
The six paths have general applicability across industry sectors. None of the paths requires special vision or foresight about the future. All are based on looking at familiar data from a new perspective.
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