Blue Ocean Strategy (Kim & Mauborgne) proposes creating uncontested market space rather than competing in existing "red oceans." The Value Innovation framework helps you identify which factors to Eliminate, Reduce, Raise, and Create relative to the industry standard.
Don't compete on the same dimensions as incumbents. Redefine the playing field by creating new value factors.
MedTech Value Curve Example
ELIMINATE: Complex multi-step calibration, bulky hardware REDUCE: Price vs premium 3D systems, training time RAISE: AI accuracy, exam speed, ease of use CREATE: Real-time 3D with automatic AI measurement, portable form factor
Key Takeaways
- Blue Ocean = create uncontested market space.
- Use ERRC: Eliminate, Reduce, Raise, Create.
- Don't compete on incumbents' terms — redefine the game.
- Value innovation = simultaneously lower cost AND increase value.