Handout 8

Question 1

creates a new market space and stimulates new demand.

Answer 1

blue ocean strategy

Question 2

competing in an existing market space to capture demand

Answer 2

red ocean strategy

Question 3

graphically depicts a company’s and its competitor’s value proposition, suggests opportunities to escape/eliminate competition, captures the current and future state of activity within a market space, and documents current and future competitive investments.

Answer 3

Strategy Canvas

Question 4

The strategy canvas serves two (2) purposes:

Answer 4

• To capture the current state of a market space
• To propel users to refocusfrom competitors to alternatives

Question 5

A helpful tool in crafting a future strategy canvas is the “Four (4) Actions Framework,” as it facilitates
identifying the value elements to be created, increased, decreased, or eliminated.

Answer 5

ERRC (Eliminate, Reduce, Raise, Create)

Question 6

a simple matrix-like tool that drives companies to focus simultaneously on eliminating, reducing, raising, and creating while unlocking a new blue ocean.

Answer 6

ERRC (Eliminate, Reduce, Raise, Create)

Question 7

a tool for creating blue oceans. It pushes companies to act on the questions posed in the
Four (4) Actions Framework to create a new value curve (or strategic profile), essential to unlocking a new blue ocean.

Answer 7

ERRC Grid