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Blue Ocean Strategy Tools

Value Innovation

Cost savings are made by eliminating and reducing the factors an industry competes on.
Buyer value is lifted by raising and creating elements the industry has never offered.

© Kim & Mauborgne. All rights reserved.

W. Chan Kim and Renée Mauborgne developed the concept of Value Innovation, the cornerstone of blue ocean strategy. It is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. Because value to buyers comes from the offering’s utility minus its price, and because value to the company is generated from the offering’s price minus its cost, value innovation is achieved only when the whole system of utility, price, and cost is aligned.

Break the value-cost trade-off by answering the following questions:

  • Which of the factors that the industry takes for granted should be eliminated?
  • Which factors should be reduced well below the industry’s standard?
  • What factors should be raised well above the industry’s standard?
  • What factors should be created that the industry has never offered?

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W. Chan Kim and Renée Mauborgne created a comprehensive set of analytic tools and frameworks any organization can apply to create new market spaces and make the competition irrelevant.

Blue ocean strategy tools, methodologies and frameworks bring structure to what has historically been an unstructured problem in strategy – informing organizations’ ability to create new market spaces systematically. With blue ocean strategy tools and analytics, companies can now pursue and create blue oceans of uncontested market space in an opportunity-maximizing, risk-minimizing way. The best way to beat the competition is to stop trying to beat the competition.

Select from the icons below to learn more about the analytic tools of blue ocean strategy:

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

Red Ocean vs. Blue Ocean Strategy
Value Innovation
Visualizing Strategy
Strategy Canvas
Four Actions Framework
ERRC Grid
Six Paths Framework
Pioneer Migrator Settler Map
Three Tiers of Noncustomers
Sequence of Blue Ocean Strategy
Buyer Utility Map
Price Corridor
of the Mass
Four Hurdles to Strategy Execution
Tipping Point Leadership
Fair Process