Value Proposition Design

Blue Ocean Thinking for New Propositions

Use Blue Ocean tools to escape head‑to‑head fights. Apply strategy canvas and the ERRC grid to design new demand.

The ERRC grid asks you to Eliminate, Reduce, Raise, and Create factors to achieve ______.

category parity only

value innovation (differentiation at lower cost)

cost leadership alone

a higher ad budget

ERRC simultaneously challenges industry assumptions to unlock new value and lower costs.

On a strategy canvas, the ‘value curve’ visualises ______.

department budgets by quarter

how offerings perform across key factors versus rivals

supplier contracts by term

SWOT items per team

The canvas plots competing factors and each player’s relative emphasis to reveal opportunities.

A common first step in Blue Ocean work is to map the current ______.

share price volatility

tax effective rates

strategic landscape and noncustomer insights

org‑chart layers

Understanding industry factors and noncustomers helps reveal uncontested spaces.

Which move best fits Blue Ocean logic?

drop over‑served features while creating new benefits that matter to noncustomers

double every feature competitors have

copy best‑seller bundles exactly

win by matching lowest price only

Eliminate/reduce costly extras and elevate/create factors that unlock new demand.

The ‘price corridor of the mass’ concept guides you to ______.

maximise ARPU at any volume

select a scalable price band that attracts the largest demand pool

price only at cost plus

ignore cross‑industry alternatives

Target pricing aims at mass adoption while capturing value from new demand.

A tell‑tale sign of red‑ocean competition on the canvas is ______.

flat COGS year over year

rising employee NPS

more capex in R&D

nearly identical value curves across competitors

Converging curves show imitation rather than strategic reconstruction of value.

In workshops, a practical ERRC exercise is to ask teams to ______.

standardise to category specs

pick factors by internal politics

list factors customers ignore or resent and cut or reduce them

double spend on every factor

Removing or shrinking low‑value elements frees resources to raise/create high‑value ones.

Compared with incremental improvement, Blue Ocean aims to ______.

maintain status quo and defend share only

reconstruct market boundaries to make competition less relevant

outspend rivals on parity features

optimise ad frequency in existing segments

Shifting the basis of competition opens new space rather than fighting over the old.

For early validation, teams often use a ______ to compare before/after curves.

strategy canvas of the new offering against incumbents

Gantt chart of the roadmap

cashflow waterfall

org change plan

Plotting the proposed curve highlights distinctive raises/creates customers will notice.

A Blue Ocean risk to watch is ______.

being too simple to explain

setting corridor pricing

confusing novelty with value customers will pay for at scale

over‑documenting experiments

Value innovation demands customer‑validated benefits, not novelty for its own sake.

Starter

Good start—solid grasp of the basics of this topic. Re‑check definitions and simple diagnostics, then retake.

Solid

You’re applying the right mental models. Push on edge‑cases and trade‑offs to lock in consistency.

Expert!

Mastery! Your calls reflect strong judgment and clear, outcome‑focused reasoning for this theme.

What's your reaction?

Related Quizzes

1 of 10

Leave A Reply

Your email address will not be published. Required fields are marked *