Jerick Loresto BSTM 3-B

The Eliminate-Reduce-Raise-Create (ERRC) grid is an essential tool in blue ocean strategy. It's a
simple matrix-like tool that encourages companies to focus on eliminating and reducing, growing
and creating simultaneously, while unlocking new blue oceans. This analytics tool complements
the Four Actions Framework. Companies are asked not only to ask the questions posed by the
four behaviors, but to respond to all four in order to create the new value curve (or strategic
profile) essential to unlocking the new blue ocean. I'm here. The Web brings four direct benefits
to businesses. Differentiation and low cost must be pursued at the same time to break the
value/cost trade-off. This immediately points to companies focusing solely on growth and
creation, pulling up cost structures and over-engineering their products and services, a common
predicament for many companies. It is easy to understand for managers at all levels and ensures
a high level of engagement in its use. Perfecting the grid is a daunting task, so it helps companies
to thoroughly examine all the competing elements of their industry to discover the extent of the
unwitting assumptions they make in their competition.