methodatlas
Method guideBusiness Strategy

Blue Ocean Strategy Canvas

A practical method guide: clarify prerequisites and materials, understand the complete process, and look up outputs, pitfalls, and stop criteria.

ComplexityMedium
Time2-4 h
Participants3-10
FormatWorkshop
MaturityCanonical
Plan
01

Prerequisite

What needs to be finished first

Complete firstComparable factors

Factors describe where the industry invests and what buyers receive.

Do not use internal capabilities as axis labels.
Complete firstRelative evidence

Curves draw on traceable market, customer or offer data.

Mark estimates and validate them deliberately.
02

Preparation

What needs to be ready before start

Materials

Market boundary, customer and noncustomer evidence, current competing factors, relative offering data and ERRC Grid.

People / roles

Strategy owner, customer insight, offer, finance and delivery perspectives, plus facilitator.

Pre-read

What buyers pay for, where providers invest, which alternatives noncustomers use and which factors drive cost.

Time needed

3–5 hours plus research and market validation

Setup

Prepare a horizontal factor axis, one relative scale and separate curves for industry standard, current offer and target profile.

03

Core question

The one question this method answers

Which factors should we eliminate, reduce, raise or create to produce a distinctly different value curve?

04

Flow

Phases with goal, actions, output and pitfall

The Strategy Canvas plots key competing factors on the horizontal axis and relative offering level on the vertical axis. Current curves reveal convergence; Eliminate, Reduce, Raise, and Create structure a new curve with focus, divergence, and a clear strategic profile.

Strategy Canvas · Value Curves

Fictional example

Rows are competing factors; columns separate industry pattern, current offer, target profile and ERRC choice.

Strategy Canvas · Value Curves
Competing factorIndustry patternCurrent offerTarget profileERRC
Course breadthWhat relative level do market, current and target offer?highhighlowReduce
Live supportWhat relative level do market, current and target offer?lowlowhighRaise
AuditabilityWhat relative level do market, current and target offer?mediumlowhighRaise
Practice pathwaysWhat relative level do market, current and target offer?lowlowhighCreate

  1. 1. Industry pattern

    Course breadth
    high
    Live support
    low
    Auditability
    medium
    Practice pathways
    low

  2. 2. Current offer

    Course breadth
    high
    Live support
    low
    Auditability
    low
    Practice pathways
    low

  3. 3. Target profile

    Course breadth
    low
    Live support
    high
    Auditability
    high
    Practice pathways
    high

  4. 4. ERRC

    Course breadth
    Reduce
    Live support
    Raise
    Auditability
    Raise
    Practice pathways
    Create

Relative values reveal patterns and are not an objective measurement scale.

Blue Ocean Strategy: Strategy Canvas

  1. 1

    Factors

    Define competing factors

    Goal

    Shared factor axis

    Inputs for this step

    • Market boundary
    • Customer and competitor evidence

    Actions

    • Collect factors in which providers invest and by which buyers compare.
    • Merge overlaps and translate internal features into buyer impact.

    Output

    Ordered factor axis

    Concrete, distinct factors

    Quality check

    Are factors relevant to buyers and comparable across offers?

    Pitfall

    The axis lists internal features or marketing terms. Rewrite each as a buyer-visible benefit or burden.

    Timing: 30–45 minutes

  2. 2

    Current curves

    Plot current value curves

    Goal

    Evidenced current canvas

    Inputs for this step

    • Factor axis
    • Relative market and usage data

    Actions

    • Set a relative offering level for each relevant offer and factor.
    • Mark estimates and discuss convergence, oversupply and gaps.

    Output

    Current value curves

    Factor values, source and uncertainty

    Quality check

    Does the same scale mean the same thing across all factors? Are ratings relative rather than falsely precise?

    Pitfall

    The current offer is systematically rated higher. Calibrate curves with external data or buyer judgement.

    Timing: 45–70 minutes

  3. 3

    ERRC

    Make ERRC choices

    Goal

    Value innovation logic

    Inputs for this step

    • Current curves
    • Noncustomer and cost evidence

    Actions

    • State concrete Eliminate, Reduce, Raise and Create choices.
    • Test buyer value, cost effect, risks and assumptions for each.

    Output

    ERRC Grid

    Action, rationale, effect and assumption

    Quality check

    Does the logic contain real trade-offs and new value? Do choices conflict?

    Pitfall

    Everything is raised or created. Eliminate and reduce factors to create focus and cost room.

    Timing: 45–70 minutes

  4. 4

    Target curve

    Design the target curve

    Goal

    Strategic target profile

    Inputs for this step

    • ERRC Grid
    • Factor axis

    Actions

    • Plot target levels for retained and new factors.
    • Test the curve for focus, divergence and a clear strategic tagline.

    Output

    Target value curve

    Target levels and strategic tagline

    Quality check

    Does the shape visibly depart from the industry pattern? Can a buyer understand the value in one clear sentence?

    Pitfall

    The target curve is only incrementally better everywhere. Reopen ERRC and test a stronger eliminate, reduce or create choice.

    Timing: 30–45 minutes

  5. 5

    Validate

    Test the curve in market

    Goal

    Validation and adaptation plan

    Inputs for this step

    • Target curve
    • Critical assumptions and noncustomers

    Actions

    • Define a small market or cost test for each critical factor.
    • Set signal, threshold, owner, date and adaptation rule.

    Output

    Validation plan

    Assumption, test, threshold and consequence

    Quality check

    Do tests cover both buyer value and cost logic?

    Pitfall

    The target curve is treated as decided strategy. Label it as a hypothesis and gate investment on validation thresholds.

    Timing: 25–40 minutes

05

Artifact

What comes out at the end

Sketch: what the artifact looks like

Blue Ocean Strategy Canvas · Wertkurven und ERRCWettbewerbsfaktoren vergleichen, Differenzierungsräume finden und ERRC-Aktionen ableiten
Blue Ocean Strategy CanvasDie Skizze zeigt Wettbewerbsfaktoren, rote und blaue Wertkurve, einen Differenzierungsraum und ERRC-Aktionen.Wertkurven vergleichen und neuen Marktraum öffnenWettbewerbsfaktoren sichtbar machen, Lücken erkennen und ERRC-Aktionen ableiten.DifferenzierungsraumhochniedrigAngebotsniveauWettbewerbsfaktorenPreisAuswahlServiceKomfortStatusEinfachheitCommunityRoter Ozeanähnliche WertkurveBlauer Ozeanneue NachfrageEliminatewas streichen?Reducewas verringern?Raisewas erhöhen?Createwas neu schaffen?
Form

Evidenced Strategy Canvas with current curves, ERRC choices, target curve, assumptions and validation plan.

Versioning / ownership

Record factors, scale, sources and date per curve; version target curves as hypotheses.

Tool alternatives
  • Strategy Canvas
  • ERRC Grid
  • Customer and noncustomer interviews

blue-ocean-strategy-canvas-working-template.md

Bound the market and buyer perspective; prepare evidence on competing factors and relative offering levels.

Blue Ocean Strategy Canvas: Worksheet

Question

To be confirmed

Desired outcome

To be confirmed

Scope

Complete workflow Time: 3–5 hours plus research and market validation

Complete this worksheet on paper or in your own document during the work.

Preparation for this scope

Method setup

  • Materials: Market boundary, customer and noncustomer evidence, current competing factors, relative offering data and ERRC Grid.
  • Roles: Strategy owner, customer insight, offer, finance and delivery perspectives, plus facilitator.
  • Advance information: What buyers pay for, where providers invest, which alternatives noncustomers use and which factors drive cost.
  • Overall time needed: 3–5 hours plus research and market validation
  • Setup: Prepare a horizontal factor axis, one relative scale and separate curves for industry standard, current offer and target profile.

Prepare for the work steps

Factors: Define competing factors

  • Market boundary
  • Customer and competitor evidence

Current curves: Plot current value curves

  • Factor axis
  • Relative market and usage data

ERRC: Make ERRC choices

  • Current curves
  • Noncustomer and cost evidence

Target curve: Design the target curve

  • ERRC Grid
  • Factor axis

Validate: Test the curve in market

  • Target curve
  • Critical assumptions and noncustomers

Strategy Canvas · Value Curves

Competing factorIndustry patternCurrent offerTarget profileEliminate, Reduce, Raise or Create
Course breadth
Live support
Auditability
Practice pathways
  • Course breadth: What relative level do market, current and target offer?
  • Live support: What relative level do market, current and target offer?
  • Auditability: What relative level do market, current and target offer?
  • Practice pathways: What relative level do market, current and target offer?

Write factors from the buyer perspective. Use one relative scale and mark estimates.

Blue Ocean Strategy: Strategy Canvas

Factors: Define competing factors

Expected artifact: Ordered factor axis

Concrete, distinct factors

Entry:

...

  • Are factors relevant to buyers and comparable across offers?

Current curves: Plot current value curves

Expected artifact: Current value curves

Factor values, source and uncertainty

Entry:

...

  • Does the same scale mean the same thing across all factors?
  • Are ratings relative rather than falsely precise?

ERRC: Make ERRC choices

Expected artifact: ERRC Grid

Action, rationale, effect and assumption

Entry:

...

  • Does the logic contain real trade-offs and new value?
  • Do choices conflict?

Target curve: Design the target curve

Expected artifact: Target value curve

Target levels and strategic tagline

Entry:

...

  • Does the shape visibly depart from the industry pattern?
  • Can a buyer understand the value in one clear sentence?

Validate: Test the curve in market

Expected artifact: Validation plan

Assumption, test, threshold and consequence

Entry:

...

  • Do tests cover both buyer value and cost logic?

Open questions and next steps

...

Method guide: https://methodatlas.meierhoff-systems.de/en/methods/blue-ocean-strategy-canvas/run-sheet

06

Example output

Concrete filled scenario, fictional example

Fictional example for orientation. Counts and timings describe this case and are not universal requirements.

blue-ocean-strategy-canvas-beispiel.md

Concrete filled scenario, fictional example

Fictional example

Market: Professional learning platforms for mid-sized firms. Factors: course breadth, live support, auditability, setup effort and price per user.

Industry pattern: high breadth, low live support, medium auditability, low setup effort.

ERRC: reduce breadth; eliminate decorative certificates; raise transfer support and auditable competence evidence; create role-specific practice pathways.

Target curve: less content, much more transfer and auditability. Test: Three compliance teams review a clickable offer prototype. Threshold: two firm pilot intentions at the target price.

07

Pitfalls

Recognize symptoms and steer against them

Quick overview, the full text is in the matching phase in the flow

  1. Define competing factorsThe axis lists internal features or marketing terms.View in phase
  2. Plot current value curvesThe current offer is systematically rated higher.View in phase
  3. Make ERRC choicesEverything is raised or created.View in phase
  4. Design the target curveThe target curve is only incrementally better everywhere.View in phase
  5. Test the curve in marketThe target curve is treated as decided strategy.View in phase
08

Stop criteria

When to pause, resolve prerequisites, or choose another approach

Market and buyer perspective are too vague for meaningful comparison.
The target curve contains no trade-off or testable value and cost assumption.

Method after W. Chan Kim and Renée Mauborgne. Curated with 2 sources.

Sources: Strategy Canvas, Four Actions Framework

Flow, timeboxes, and pitfalls are editorially curated practice recommendations based on the listed sources.

Where to go next?

Paper illustration of a Business Model Canvas with nine connected compartments, a few notes and symbols for customers, delivery and economic relationships.
Business Strategy
Business Model Canvas

Embeds the new value curve into a complete business model.

Paper illustration for Landing Page Test.
Product Discovery
Landing Page Test

Tests the differentiated value proposition against real market behavior.

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