The third question pushes you to uncover and eliminate the compromises buyers are forced to make. RAISE: Which factors should be raised well above the industry’s standard? Here, organizations overserve customers, increasing their cost structure for no gain.
The second question pushes you to determine whether products or services have been overdesigned in the race to match and beat the competition. REDUCE: Which factors should be reduced well below the industry’s standard? Sometimes there is a fundamental change in what buyers value, but companies that are focused on benchmarking one another do not act on, or even perceive the change. Often those factors are taken for granted even though they no longer have value or may even detract from value. This question forces you to consider eliminating factors that companies in your industry have long competed on.
Read next: Why Lowering Costs and Increasing Value Doesn’t Need to Be a Trade-OffĮLIMINATE: Which factors that the industry takes for granted should be eliminated? The four actions framework is built on four key questions that will help you challenge an industry’s strategic logic and business model to arrive at blue ocean moves that break the trade-off between differentiation and low cost.
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